Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 15, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-31447 | ||
Entity Registrant Name | CenterPoint Energy, Inc. | ||
Entity Tax Identification Number | 74-0694415 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, Address Line One | 1111 Louisiana | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 207-1111 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14,445,680,164 | ||
Entity Common Stock, Shares Outstanding | 628,936,067 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement relating to the 2022 Annual Meeting of Shareholders of CenterPoint Energy, which will be filed with the Securities and Exchange Commission within 120 days of December 31, 2021, are incorporated by reference in Item 10, Item 11, Item 12, Item 13 and Item 14 of Part III of this Form 10-K. | ||
Entity Central Index Key | 0001130310 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Stock, $0.01 par value | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | CNP | ||
Security Exchange Name | NYSE | ||
Common Stock, $0.01 par value | Chicago Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | CNP | ||
Security Exchange Name | CHX | ||
CenterPoint Energy Houston Electric, LLC | |||
Entity Information [Line Items] | |||
Entity File Number | 1-3187 | ||
Entity Registrant Name | CenterPoint Energy Houston Electric, LLC | ||
Entity Tax Identification Number | 22-3865106 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, Address Line One | 1111 Louisiana | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 207-1111 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Entity Central Index Key | 0000048732 | ||
CenterPoint Energy Houston Electric, LLC | 6.95% General Mortgage Bonds due 2033 | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.95% General Mortgage Bonds due 2033 | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true | ||
CenterPoint Energy Resources Corp. | |||
Entity Information [Line Items] | |||
Entity File Number | 1-13265 | ||
Entity Registrant Name | CenterPoint Energy Resources Corp. | ||
Entity Tax Identification Number | 76-0511406 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 1111 Louisiana | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77002 | ||
City Area Code | (713) | ||
Local Phone Number | 207-1111 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Entity Central Index Key | 0001042773 | ||
CenterPoint Energy Resources Corp. | 6.625% Senior Notes due 2037 | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 6.625% Senior Notes due 2037 | ||
Security Exchange Name | NYSE | ||
No Trading Symbol Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 34 |
Houston Electric | |
Auditor [Line Items] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 34 |
CERC Corp | |
Auditor [Line Items] | |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 34 |
STATEMENTS OF CONSOLIDATED INCO
STATEMENTS OF CONSOLIDATED INCOME - USD ($) shares in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||||
Utility revenues | $ 8,042,000,000 | $ 7,049,000,000 | $ 7,202,000,000 | ||
Non-utility revenues | 310,000,000 | 369,000,000 | 362,000,000 | ||
Total | 8,352,000,000 | 7,418,000,000 | 7,564,000,000 | ||
Expenses: | |||||
Utility natural gas, fuel and purchased power | 2,127,000,000 | 1,488,000,000 | 1,762,000,000 | ||
Non-utility cost of revenues, including natural gas | 208,000,000 | 257,000,000 | 257,000,000 | ||
Operation and maintenance | 2,810,000,000 | 2,744,000,000 | 2,775,000,000 | ||
Depreciation and amortization | 1,316,000,000 | 1,189,000,000 | 1,225,000,000 | ||
Taxes other than income taxes | 528,000,000 | 516,000,000 | 474,000,000 | ||
Goodwill impairment | $ 0 | $ 0 | 0 | 185,000,000 | 0 |
Total | 6,989,000,000 | 6,379,000,000 | 6,493,000,000 | ||
Operating Income | 1,363,000,000 | 1,039,000,000 | 1,071,000,000 | ||
Other Income (Expense): | |||||
Gain (loss) on equity securities | (172,000,000) | 49,000,000 | 282,000,000 | ||
Gain (loss) on indexed debt securities | 50,000,000 | (60,000,000) | (292,000,000) | ||
Gain on sale | 8,000,000 | 0 | 0 | ||
Interest expense and other finance charges | (508,000,000) | (501,000,000) | (528,000,000) | ||
Interest expense on Securitization Bonds | (21,000,000) | (28,000,000) | (39,000,000) | ||
Other income, net | 58,000,000 | 64,000,000 | 51,000,000 | ||
Total | (585,000,000) | (476,000,000) | (526,000,000) | ||
Income from Continuing Operations Before Income Taxes | 778,000,000 | 563,000,000 | 545,000,000 | ||
Income tax expense | 110,000,000 | 80,000,000 | 30,000,000 | ||
Income From Continuing Operations | 668,000,000 | 483,000,000 | 515,000,000 | ||
Net Income (Loss) | 1,486,000,000 | (773,000,000) | 791,000,000 | ||
Income allocated to preferred shareholders | 95,000,000 | 176,000,000 | 117,000,000 | ||
Income (Loss) Available to Common Shareholders | $ 1,391,000,000 | $ (949,000,000) | $ 674,000,000 | ||
Earnings (loss) per common share: | |||||
Basic earnings per common share - continuing operations (in dollars per share) | $ 0.97 | $ 0.58 | $ 0.79 | ||
Basic earnings (loss) per common share - discontinued operations (in dollars per share) | 1.38 | (2.37) | 0.55 | ||
Basic Earnings (Loss) Per Common Share (in dollars per share) | 2.35 | (1.79) | 1.34 | ||
Earnings Per Share, Diluted [Abstract] | |||||
Diluted earnings per common share - continuing operations (in dollars per share) | 0.94 | 0.58 | 0.79 | ||
Diluted earnings (loss) per common share - discontinued operations (in dollars per share) | 1.34 | (2.37) | 0.54 | ||
Diluted Earnings (Loss) Per Common Share (in dollars per share) | $ 2.28 | $ (1.79) | $ 1.33 | ||
Weighted Average Common Shares Outstanding, Basic | 592,933 | 531,031 | 502,050 | ||
Weighted Average Common Shares Outstanding, Diluted | 609,938 | 531,031 | 505,157 |
STATEMENTS OF CONSOLIDATED IN_2
STATEMENTS OF CONSOLIDATED INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Income tax expense (benefit) from discontinued operations | $ 201 | $ (333) | $ 108 |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Other Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,486 | $ (773) | $ 791 |
Other comprehensive income (loss): | |||
Adjustment to pension and other postretirement plans | 21 | (5) | 12 |
Net deferred loss from cash flow hedges | 0 | 0 | (2) |
Reclassification of deferred loss from cash flow hedges realized in net income | 2 | 0 | 1 |
Reclassification of net deferred losses from cash flow hedges | 0 | 15 | 0 |
Other comprehensive loss from unconsolidated affiliates, net of tax | 3 | (2) | (1) |
Total | 26 | 8 | 10 |
Comprehensive income (loss) | 1,512 | (765) | 801 |
Income allocated to preferred shareholders | 95 | 176 | 117 |
Comprehensive income (loss) available to common shareholders | $ 1,417 | $ (941) | $ 684 |
STATEMENTS OF CONSOLIDATED CO_2
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Other Comprehensive Income [Abstract] | |||
Adjustment to other postemployment plans, tax | $ 7 | $ 0 | $ 4 |
Deferred loss from cash flow hedge, tax | 0 | 0 | (1) |
Reclassification of deferred loss from cash flow hedges realized in net income, tax | 0 | 0 | 0 |
Reclassification of net deferred losses from cash flow hedge, tax | 0 | 4 | 0 |
Other comprehensive loss from unconsolidated affiliates, tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 230 | $ 147 |
Investment in equity securities | 1,439 | 871 |
Accounts receivable, less allowance for credit losses | 690 | 676 |
Accrued unbilled revenue, less allowance for credit losses | 513 | 505 |
Natural gas and coal inventory | 186 | 203 |
Materials and supplies | 422 | 297 |
Non-trading derivative assets | 9 | 0 |
Taxes receivable | 1 | 82 |
Current assets held for sale | 2,338 | 0 |
Regulatory assets | 1,395 | 18 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 132 | 121 |
Total current assets | 7,355 | 2,920 |
Property, Plant and Equipment, net | 23,484 | 22,362 |
Other Assets: | ||
Goodwill | 4,294 | 4,697 |
Regulatory assets ($420 and $633 related to VIEs, respectively) | 2,321 | 2,094 |
Non-trading derivative assets | 5 | 0 |
Preferred units - unconsolidated affiliate | 0 | 363 |
Non-current assets held for sale | 0 | 782 |
Other non-current assets | 220 | 253 |
Total other assets | 6,840 | 8,189 |
Total Assets | 37,679 | 33,471 |
Current Liabilities: | ||
Short-term borrowings | 7 | 24 |
Current portion of VIE Securitization Bonds long-term debt | 220 | 211 |
Indexed debt, net | 10 | 15 |
Current portion of other long-term debt | 308 | 1,669 |
Indexed debt securities derivative | 903 | 953 |
Accounts payable | 1,196 | 853 |
Taxes accrued | 378 | 265 |
Interest accrued | 136 | 145 |
Dividends accrued | 131 | 136 |
Customer deposits | 111 | 119 |
Non-trading derivative liabilities | 2 | 3 |
Current liabilities held for sale | 562 | 0 |
Other | 323 | 432 |
Total current liabilities | 4,287 | 4,825 |
Other Liabilities: | ||
Deferred income taxes, net | 3,904 | 3,603 |
Non-trading derivative liabilities | 12 | 27 |
Benefit obligations | 511 | 680 |
Regulatory liabilities | 3,153 | 3,448 |
Other | 836 | 1,019 |
Total other liabilities | 8,416 | 8,777 |
Long-term Debt: | ||
VIE Securitization Bonds, net | 317 | 536 |
Other long-term debt, net | 15,241 | 10,985 |
Total long-term debt, net | 15,558 | 11,521 |
Commitments and Contingencies (Note 16) | ||
Temporary Equity (Note 19) | 3 | 0 |
Shareholders’ Equity: | ||
Cumulative preferred stock | 790 | 2,363 |
Common stock | 6 | 6 |
Additional paid-in capital | 8,529 | 6,914 |
Retained earnings (accumulated deficit) | 154 | (845) |
Accumulated other comprehensive loss | (64) | (90) |
Total shareholders’ equity | 9,415 | 8,348 |
Total Liabilities and Shareholders’ Equity | $ 37,679 | $ 33,471 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | |||
Cash and cash equivalents | $ 230,000,000 | $ 147,000,000 | |
Accounts receivable | 690,000,000 | 676,000,000 | |
Bad debt reserve | 44,000,000 | 52,000,000 | |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 132,000,000 | 121,000,000 | |
Other Assets [Abstract] | |||
Regulatory assets ($420 and $633 related to VIEs, respectively) | $ 2,321,000,000 | $ 2,094,000,000 | |
Shareholders’ Equity: | |||
Cumulative preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Cumulative preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 |
Cumulative preferred stock, outstanding (in shares) | 800,000 | 2,402,400 | 1,777,500 |
Cumulative preferred stock, aggregate liquidation preference | $ 800 | $ 2,402 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, outstanding (in shares) | 628,923,534 | 551,355,861 | |
Variable Interest Entity, Primary Beneficiary | |||
Current Assets: | |||
Cash and cash equivalents | $ 92,000,000 | $ 139,000,000 | |
Accounts receivable | 29,000,000 | 23,000,000 | |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 19,000,000 | 15,000,000 | |
Other Assets [Abstract] | |||
Regulatory assets ($420 and $633 related to VIEs, respectively) | $ 420,000,000 | $ 633,000,000 |
STATEMENTS OF CONSOLIDATED CASH
STATEMENTS OF CONSOLIDATED CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 1,486,000,000 | $ (773,000,000) | $ 791,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,316,000,000 | 1,189,000,000 | 1,225,000,000 |
Deferred income taxes | 213,000,000 | (429,000,000) | 69,000,000 |
Goodwill impairment and loss from reclassification to held for sale | 0 | 175,000,000 | 48,000,000 |
Goodwill impairment | 0 | 185,000,000 | 0 |
Loss (gain) on equity securities | 172,000,000 | (49,000,000) | (282,000,000) |
Loss (gain) on indexed debt securities | (50,000,000) | 60,000,000 | 292,000,000 |
Equity in (earnings) losses of unconsolidated affiliates | (339,000,000) | 1,428,000,000 | (230,000,000) |
Distributions from unconsolidated affiliates | 155,000,000 | 113,000,000 | 261,000,000 |
Pension contributions | (61,000,000) | (86,000,000) | (109,000,000) |
Changes in other assets and liabilities, excluding acquisitions: | |||
Accounts receivable and unbilled revenues, net | (98,000,000) | 90,000,000 | 226,000,000 |
Inventory | (140,000,000) | 9,000,000 | (52,000,000) |
Taxes receivable | 81,000,000 | 24,000,000 | (106,000,000) |
Accounts payable | 175,000,000 | 2,000,000 | (455,000,000) |
Net regulatory assets and liabilities | (2,295,000,000) | (107,000,000) | (22,000,000) |
Other current assets and liabilities | 56,000,000 | 104,000,000 | (195,000,000) |
Other assets and liabilities | (53,000,000) | 25,000,000 | 49,000,000 |
Other operating activities, net | 85,000,000 | 35,000,000 | 128,000,000 |
Net cash provided by operating activities | 22,000,000 | 1,995,000,000 | 1,638,000,000 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (3,164,000,000) | (2,596,000,000) | (2,506,000,000) |
Acquisitions, net of cash acquired | 0 | 0 | (5,991,000,000) |
Transaction costs related to Enable Merger (Note 4) | (49,000,000) | 0 | 0 |
Cash received related to Enable Merger | 5,000,000 | 0 | 0 |
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | 80,000,000 | 42,000,000 |
Proceeds from sale of equity securities, net of transaction costs | 1,320,000,000 | 0 | 0 |
Proceeds from divestitures (Note 4) | 22,000,000 | 1,215,000,000 | 0 |
Other investing activities, net | 15,000,000 | 36,000,000 | 34,000,000 |
Net cash used in investing activities | (1,851,000,000) | (1,265,000,000) | (8,421,000,000) |
Cash Flows from Financing Activities: | |||
Decrease in short-term borrowings, net | (27,000,000) | 0 | 0 |
Payment of obligation for finance lease | (179,000,000) | 0 | 0 |
Borrowings from revolving credit facilities | 0 | 1,050,000,000 | 135,000,000 |
Repayments of revolving credit facilities | 0 | (1,050,000,000) | (135,000,000) |
Proceeds from (payments of) commercial paper, net | 1,132,000,000 | (761,000,000) | 1,891,000,000 |
Proceeds from long-term debt | 4,493,000,000 | 799,000,000 | 2,916,000,000 |
Payments of long-term debt, including make-whole premiums | (2,968,000,000) | (1,724,000,000) | (1,302,000,000) |
Payment of debt issuance costs | (38,000,000) | (8,000,000) | (20,000,000) |
Payment of dividends on Common Stock | (385,000,000) | (392,000,000) | (577,000,000) |
Payment of dividends on Preferred Stock | (107,000,000) | (137,000,000) | (118,000,000) |
Proceeds from issuance of Common Stock, net | 0 | 672,000,000 | 0 |
Proceeds from issuance of Series C Preferred stock, net | 0 | 723,000,000 | 0 |
Other financing activities, net | (5,000,000) | (6,000,000) | (14,000,000) |
Net cash provided by (used in) financing activities | 1,916,000,000 | (834,000,000) | 2,776,000,000 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 87,000,000 | (104,000,000) | (4,007,000,000) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 167,000,000 | 271,000,000 | 4,278,000,000 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 254,000,000 | 167,000,000 | 271,000,000 |
Gain on Enable Merger | $ (681,000,000) | $ 0 | $ 0 |
STATEMENTS OF CONSOLIDATED CHAN
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY - USD ($) $ in Millions | Total | Series A Preferred Stock | Series B Preferred Stock | Series C Preferred Stock | Cumulative Preferred Stock | Cumulative Preferred StockSeries C Preferred Stock | Cumulative Preferred StockSeries B and Series C Preferred Stock | Common Stock | Additional Paid-in-Capital | Additional Paid-in-CapitalSeries B and Series C Preferred Stock | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit)Series A Preferred Stock | Retained Earnings (Accumulated Deficit)Series B Preferred Stock | Retained Earnings (Accumulated Deficit)Series C Preferred Stock | Accumulated Other Comprehensive Loss |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 2,000,000 | |||||||||||||||
Balance, beginning of year at Dec. 31, 2018 | $ 1,740 | $ 5 | $ 6,072 | $ 349 | $ 0 | $ (108) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Stock issued (in shares) | 0 | 0 | ||||||||||||||
Stock issued | $ 0 | $ 0 | 0 | |||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock (in shares) | 0 | |||||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock | $ 0 | $ 0 | ||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2019 | 1,777,500 | 800,000 | 977,500 | 0 | 2,000,000 | |||||||||||
Balance, beginning of year (in shares) at Dec. 31, 2018 | 501,000,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance related to benefit and investment plans (in shares) | 1,000,000 | |||||||||||||||
Issuances related to benefit and investment plans | $ 0 | 8 | ||||||||||||||
Recognition of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Net income (loss) | 791 | 791 | ||||||||||||||
Common Stock dividends declared (see Note 13) | (433) | |||||||||||||||
Preferred stock dividends declared | $ (24) | $ (51) | $ 0 | |||||||||||||
Amortization of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | |||||||||||||||
Other comprehensive income | 10 | |||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2019 | 502,000,000 | |||||||||||||||
Balance, end of year at Dec. 31, 2019 | $ 8,359 | $ 1,740 | $ 5 | 6,080 | 632 | (7) | (98) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Stock issued (in shares) | 1,000,000 | 48,000,000 | ||||||||||||||
Stock issued | $ 723 | $ 1 | 672 | |||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock (in shares) | 0 | |||||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock | $ (100) | 100 | ||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2020 | 2,402,400 | 800,000 | 977,400 | 625,000 | 3,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance related to benefit and investment plans (in shares) | 1,000,000 | |||||||||||||||
Issuances related to benefit and investment plans | $ 0 | 30 | ||||||||||||||
Recognition of beneficial conversion feature | $ 32 | 32 | ||||||||||||||
Net income (loss) | (773) | (773) | ||||||||||||||
Common Stock dividends declared (see Note 13) | (480) | |||||||||||||||
Preferred stock dividends declared | (73) | (85) | (27) | |||||||||||||
Amortization of beneficial conversion feature | $ (32) | (32) | ||||||||||||||
Other comprehensive income | 8 | |||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2020 | 551,355,861 | 551,000,000 | ||||||||||||||
Balance, end of year at Dec. 31, 2020 | $ 8,348 | $ 2,363 | $ 6 | 6,914 | (845) | $ 0 | (90) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Stock issued (in shares) | 0 | 77,000,000 | ||||||||||||||
Stock issued | $ 0 | $ 0 | 1 | |||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock (in shares) | (2,000,000) | |||||||||||||||
Conversion of Series B Preferred Stock and Series C Preferred Stock | $ (1,573) | $ 1,573 | ||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2021 | 800,000 | 800,000 | 0 | 0 | 1,000,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance related to benefit and investment plans (in shares) | 1,000,000 | |||||||||||||||
Issuances related to benefit and investment plans | $ 0 | 41 | ||||||||||||||
Recognition of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Net income (loss) | 1,486 | 1,486 | ||||||||||||||
Common Stock dividends declared (see Note 13) | (404) | |||||||||||||||
Preferred stock dividends declared | $ (49) | $ (34) | $ 0 | |||||||||||||
Amortization of beneficial conversion feature | $ 0 | 0 | ||||||||||||||
Other comprehensive income | 26 | |||||||||||||||
Balance, end of year (in shares) at Dec. 31, 2021 | 628,923,534 | 629,000,000 | ||||||||||||||
Balance, end of year at Dec. 31, 2021 | $ 9,415 | $ 790 | $ 6 | $ 8,529 | $ 154 | $ (64) |
STATEMENTS OF CONSOLIDATED CH_2
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cumulative preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Cumulative preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Series A Preferred Stock | |||
Cumulative preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Series B Preferred Stock | |||
Cumulative preferred stock, par value (in dollars per share) | 0.01 | 0.01 | 0.01 |
Series C Preferred Stock | |||
Cumulative preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
STATEMENTS OF CONSOLIDATED IN_3
STATEMENTS OF CONSOLIDATED INCOME - HOUSTON ELECTRIC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statements of Consolidated Income | |||
Total revenues | $ 8,352 | $ 7,418 | $ 7,564 |
Expenses: | |||
Operation and maintenance | 2,810 | 2,744 | 2,775 |
Depreciation and amortization | 1,316 | 1,189 | 1,225 |
Taxes other than income taxes | 528 | 516 | 474 |
Total | 6,989 | 6,379 | 6,493 |
Operating Income | 1,363 | 1,039 | 1,071 |
Other Income (Expense): | |||
Interest expense and other finance charges | (508) | (501) | (528) |
Interest expense on Securitization Bonds | (21) | (28) | (39) |
Other income, net | 58 | 64 | 51 |
Total | (585) | (476) | (526) |
Income before income taxes | 778 | 563 | 545 |
Income tax expense | 110 | 80 | 30 |
Net income (loss) | 1,486 | (773) | 791 |
Houston Electric | |||
Statements of Consolidated Income | |||
Total revenues | 3,134 | 2,911 | 2,990 |
Expenses: | |||
Operation and maintenance | 1,597 | 1,523 | 1,477 |
Depreciation and amortization | 642 | 560 | 648 |
Taxes other than income taxes | 251 | 252 | 247 |
Total | 2,490 | 2,335 | 2,372 |
Operating Income | 644 | 576 | 618 |
Other Income (Expense): | |||
Interest expense and other finance charges | (183) | (171) | (164) |
Interest expense on Securitization Bonds | (21) | (28) | (39) |
Other income, net | 17 | 10 | 21 |
Total | (187) | (189) | (182) |
Income before income taxes | 457 | 387 | 436 |
Income tax expense | 76 | 53 | 80 |
Net income (loss) | $ 381 | $ 334 | $ 356 |
STATEMENTS OF CONSOLIDATED CO_3
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - HOUSTON ELECTRIC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income (loss) | $ 1,486 | $ (773) | $ 791 |
Other comprehensive income (loss): | |||
Net deferred loss from cash flow hedges | 0 | 0 | (2) |
Reclassification of deferred loss from cash flow hedges realized in net income | 2 | 0 | 1 |
Net current period other comprehensive income (loss) | 26 | 8 | 10 |
Comprehensive income (loss) available to common shareholders | 1,417 | (941) | 684 |
Houston Electric | |||
Net income (loss) | 381 | 334 | 356 |
Other comprehensive income (loss): | |||
Net deferred loss from cash flow hedges | 0 | 0 | (1) |
Reclassification of deferred loss from cash flow hedges realized in net income | 0 | 15 | 0 |
Net current period other comprehensive income (loss) | 0 | 15 | (1) |
Comprehensive income (loss) available to common shareholders | $ 381 | $ 349 | $ 355 |
STATEMENTS OF CONSOLIDATED CO_4
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - HOUSTON ELECTRIC (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred loss from cash flow hedge, tax | $ 0 | $ 0 | $ (1) |
Reclassification of net deferred losses from cash flow hedge, tax | 0 | 4 | 0 |
Houston Electric | |||
Deferred loss from cash flow hedge, tax | 0 | 0 | 0 |
Reclassification of net deferred losses from cash flow hedge, tax | $ 0 | $ 4 | $ 0 |
CONSOLIDATED BALANCE SHEETS - H
CONSOLIDATED BALANCE SHEETS - HOUSTON ELECTRIC - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 230 | $ 147 |
Accrued unbilled revenue, less allowance for credit losses | 513 | 505 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 132 | 121 |
Total current assets | 7,355 | 2,920 |
Property, Plant and Equipment, net | 23,484 | 22,362 |
Other Assets: | ||
Regulatory assets ($420 and $633 related to VIEs, respectively) | 2,321 | 2,094 |
Other non-current assets | 220 | 253 |
Total other assets | 6,840 | 8,189 |
Total Assets | 37,679 | 33,471 |
Current Liabilities: | ||
Current portion of VIE Securitization Bonds long-term debt | 220 | 211 |
Current portion of other long-term debt | 308 | 1,669 |
Accounts payable | 1,196 | 853 |
Taxes accrued | 378 | 265 |
Interest accrued | 136 | 145 |
Other | 323 | 432 |
Total current liabilities | 4,287 | 4,825 |
Other Liabilities: | ||
Deferred income taxes, net | 3,904 | 3,603 |
Benefit obligations | 511 | 680 |
Regulatory liabilities | 3,153 | 3,448 |
Other | 836 | 1,019 |
Total other liabilities | 8,416 | 8,777 |
Long-term Debt: | ||
VIE Securitization Bonds, net | 317 | 536 |
Other long-term debt, net | 15,241 | 10,985 |
Total long-term debt, net | 15,558 | 11,521 |
Commitments and Contingencies (Note 16) | ||
Shareholders’ Equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 8,529 | 6,914 |
Retained earnings (accumulated deficit) | 154 | (845) |
Total shareholders’ equity | 9,415 | 8,348 |
Total Liabilities and Shareholders’ Equity | 37,679 | 33,471 |
Houston Electric | ||
Current Assets: | ||
Cash and cash equivalents | 214 | 139 |
Accounts and notes receivable, net | 263 | 268 |
Accounts and notes receivable—affiliated companies | 11 | 7 |
Accrued unbilled revenue, less allowance for credit losses | 127 | 113 |
Materials and supplies | 292 | 195 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 49 | 47 |
Total current assets | 956 | 769 |
Property, Plant and Equipment, net | 11,203 | 9,663 |
Other Assets: | ||
Regulatory assets ($420 and $633 related to VIEs, respectively) | 789 | 848 |
Other non-current assets | 32 | 36 |
Total other assets | 821 | 884 |
Total Assets | 12,980 | 11,316 |
Current Liabilities: | ||
Current portion of VIE Securitization Bonds long-term debt | 220 | 211 |
Current portion of other long-term debt | 300 | 402 |
Accounts payable | 510 | 281 |
Accounts payable - affiliated companies | 568 | 96 |
Taxes accrued | 193 | 158 |
Interest accrued | 74 | 71 |
Other | 91 | 117 |
Total current liabilities | 1,956 | 1,336 |
Other Liabilities: | ||
Deferred income taxes, net | 1,122 | 1,041 |
Benefit obligations | 55 | 75 |
Regulatory liabilities | 1,152 | 1,252 |
Other | 98 | 95 |
Total other liabilities | 2,427 | 2,463 |
Long-term Debt: | ||
VIE Securitization Bonds, net | 317 | 536 |
Other long-term debt, net | 4,658 | 3,870 |
Total long-term debt, net | 4,975 | 4,406 |
Commitments and Contingencies (Note 16) | ||
Shareholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 2,678 | 2,548 |
Retained earnings (accumulated deficit) | 944 | 563 |
Total shareholders’ equity | 3,622 | 3,111 |
Total Liabilities and Shareholders’ Equity | $ 12,980 | $ 11,316 |
CONSOLIDATED BALANCE SHEETS -_2
CONSOLIDATED BALANCE SHEETS - HOUSTON ELECTRIC (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents | $ 230 | $ 147 |
Accounts receivable | 690 | 676 |
Bad debt reserve | 44 | 52 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 132 | 121 |
Regulatory assets ($420 and $633 related to VIEs, respectively) | 2,321 | 2,094 |
Houston Electric | ||
Cash and cash equivalents | 214 | 139 |
Bad debt reserve | 1 | 1 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 49 | 47 |
Regulatory assets ($420 and $633 related to VIEs, respectively) | 789 | 848 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents | 92 | 139 |
Accounts receivable | 29 | 23 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 19 | 15 |
Regulatory assets ($420 and $633 related to VIEs, respectively) | 420 | 633 |
Variable Interest Entity, Primary Beneficiary | Houston Electric | ||
Cash and cash equivalents | 92 | 139 |
Accounts receivable | 29 | 23 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 19 | 15 |
Regulatory assets ($420 and $633 related to VIEs, respectively) | $ 420 | $ 633 |
STATEMENTS OF CONSOLIDATED CA_2
STATEMENTS OF CONSOLIDATED CASH FLOWS - HOUSTON ELECTRIC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 1,486 | $ (773) | $ 791 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,316 | 1,189 | 1,225 |
Deferred income taxes | 213 | (429) | 69 |
Changes in other assets and liabilities, excluding acquisitions: | |||
Accounts receivable and unbilled revenues, net | (98) | 90 | 226 |
Inventory | (140) | 9 | (52) |
Accounts payable | 175 | 2 | (455) |
Taxes receivable | 81 | 24 | (106) |
Net regulatory assets and liabilities | (2,295) | (107) | (22) |
Other operating activities, net | 85 | 35 | 128 |
Net cash provided by operating activities | 22 | 1,995 | 1,638 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (3,164) | (2,596) | (2,506) |
Other investing activities, net | 15 | 36 | 34 |
Net cash used in investing activities | (1,851) | (1,265) | (8,421) |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 4,493 | 799 | 2,916 |
Payments of long-term debt, including make-whole premiums | (2,968) | (1,724) | (1,302) |
Payment of obligation for finance lease | (179) | 0 | 0 |
Other financing activities, net | (5) | (6) | (14) |
Net cash provided by (used in) financing activities | 1,916 | (834) | 2,776 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 87 | (104) | (4,007) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 167 | 271 | 4,278 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 254 | 167 | 271 |
Houston Electric | |||
Cash Flows from Operating Activities: | |||
Net income (loss) | 381 | 334 | 356 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 642 | 560 | 648 |
Deferred income taxes | 32 | (42) | (24) |
Changes in other assets and liabilities, excluding acquisitions: | |||
Accounts receivable and unbilled revenues, net | (17) | (26) | 38 |
Accounts receivable/payable–affiliated companies | (36) | 47 | (23) |
Inventory | (97) | (48) | (12) |
Accounts payable | 66 | 28 | 13 |
Taxes receivable | 0 | 0 | 5 |
Net regulatory assets and liabilities | (237) | (11) | (48) |
Other current assets and liabilities | 39 | 55 | (26) |
Other assets and liabilities | 6 | 4 | (7) |
Other operating activities, net | (9) | (2) | (2) |
Net cash provided by operating activities | 770 | 899 | 918 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (1,619) | (1,058) | (1,025) |
(Increase) decrease in notes receivable–affiliated companies | 0 | 481 | (481) |
Other investing activities, net | 2 | 13 | 11 |
Net cash used in investing activities | (1,617) | (564) | (1,495) |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 1,096 | 299 | 696 |
Payments of long-term debt, including make-whole premiums | (613) | (231) | (458) |
Dividend to parent | 0 | (551) | (376) |
Increase (decrease) in notes payable–affiliated companies | 504 | 8 | (1) |
Payment of debt issuance costs | (12) | (3) | (8) |
Contribution from parent | 130 | 62 | 590 |
Payment of obligation for finance lease | (179) | 0 | 0 |
Other financing activities, net | 0 | 0 | (1) |
Net cash provided by (used in) financing activities | 926 | (416) | 442 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 79 | (81) | (135) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 154 | 235 | 370 |
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 233 | $ 154 | $ 235 |
STATEMENTS OF CONSOLIDATED CH_3
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY - HOUSTON ELECTRIC - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Houston Electric | Houston ElectricCommon Stock | Houston ElectricAdditional Paid-in-Capital | Houston ElectricRetained Earnings (Accumulated Deficit) | Houston ElectricAccumulated Other Comprehensive Loss |
Balance, beginning of year (in shares) at Dec. 31, 2018 | 501,000,000 | 1,000 | ||||||||
Balance, end of year (in shares) at Dec. 31, 2019 | 502,000,000 | 1,000 | ||||||||
Balance, beginning of year at Dec. 31, 2018 | $ 5 | $ 6,072 | $ 349 | $ (108) | $ 0 | $ 1,896 | $ 800 | $ (14) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash contribution from parent | 590 | |||||||||
Other | 0 | |||||||||
Net income (loss) | $ 791 | 791 | $ 356 | 356 | ||||||
Dividend to parent | (376) | |||||||||
Other comprehensive income | 10 | (1) | ||||||||
Balance, end of year at Dec. 31, 2019 | $ 8,359 | $ 5 | 6,080 | 632 | (98) | 3,251 | $ 0 | 2,486 | 780 | (15) |
Balance, end of year (in shares) at Dec. 31, 2020 | 551,355,861 | 551,000,000 | 1,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash contribution from parent | 62 | |||||||||
Other | 0 | |||||||||
Net income (loss) | $ (773) | (773) | 334 | 334 | ||||||
Dividend to parent | (551) | |||||||||
Other comprehensive income | 8 | 15 | ||||||||
Balance, end of year at Dec. 31, 2020 | $ 8,348 | $ 6 | 6,914 | (845) | (90) | 3,111 | $ 0 | 2,548 | 563 | 0 |
Balance, end of year (in shares) at Dec. 31, 2021 | 628,923,534 | 629,000,000 | 1,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cash contribution from parent | 130 | |||||||||
Other | 0 | |||||||||
Net income (loss) | $ 1,486 | 1,486 | 381 | 381 | ||||||
Dividend to parent | 0 | |||||||||
Other comprehensive income | 26 | 0 | ||||||||
Balance, end of year at Dec. 31, 2021 | $ 9,415 | $ 6 | $ 8,529 | $ 154 | $ (64) | $ 3,622 | $ 0 | $ 2,678 | $ 944 | $ 0 |
STATEMENTS OF CONSOLIDATED IN_4
STATEMENTS OF CONSOLIDATED INCOME - CERC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Utility revenues | $ 8,042 | $ 7,049 | $ 7,202 |
Non-utility revenues | 310 | 369 | 362 |
Total | 8,352 | 7,418 | 7,564 |
Expenses: | |||
Utility natural gas, fuel and purchased power | 2,127 | 1,488 | 1,762 |
Non-utility cost of revenues, including natural gas | 208 | 257 | 257 |
Operation and maintenance | 2,810 | 2,744 | 2,775 |
Depreciation and amortization | 1,316 | 1,189 | 1,225 |
Taxes other than income taxes | 528 | 516 | 474 |
Total | 6,989 | 6,379 | 6,493 |
Operating Income | 1,363 | 1,039 | 1,071 |
Other Income (Expense): | |||
Gain on sale | 8 | 0 | 0 |
Interest expense and other finance charges | (508) | (501) | (528) |
Other income, net | 58 | 64 | 51 |
Total | (585) | (476) | (526) |
Income before income taxes | 778 | 563 | 545 |
Income tax expense | 110 | 80 | 30 |
Income From Continuing Operations | 668 | 483 | 515 |
Net Income (Loss) | 1,486 | (773) | 791 |
CERC Corp | |||
Revenues: | |||
Utility revenues | 3,191 | 2,711 | 2,951 |
Non-utility revenues | 57 | 52 | 67 |
Total | 3,248 | 2,763 | 3,018 |
Expenses: | |||
Utility natural gas, fuel and purchased power | 1,515 | 1,100 | 1,391 |
Non-utility cost of revenues, including natural gas | 17 | 17 | 39 |
Operation and maintenance | 790 | 798 | 824 |
Depreciation and amortization | 326 | 304 | 293 |
Taxes other than income taxes | 193 | 182 | 161 |
Total | 2,841 | 2,401 | 2,708 |
Operating Income | 407 | 362 | 310 |
Other Income (Expense): | |||
Gain on sale | 11 | 0 | 0 |
Interest expense and other finance charges | (103) | (111) | (116) |
Other income, net | (10) | (7) | (8) |
Total | (102) | (118) | (124) |
Income before income taxes | 305 | 244 | 186 |
Income tax expense | 51 | 97 | (3) |
Income From Continuing Operations | 254 | 147 | 189 |
Income (loss) from discontinued operations, net | 0 | (66) | 23 |
Net Income (Loss) | $ 254 | $ 81 | $ 212 |
STATEMENTS OF CONSOLIDATED IN_5
STATEMENTS OF CONSOLIDATED INCOME - CERC (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax expense (benefit) from discontinued operations | $ 201 | $ (333) | $ 108 |
CERC Corp | |||
Income tax expense (benefit) from discontinued operations | $ 0 | $ (2) | $ 17 |
STATEMENTS OF CONSOLIDATED CO_5
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - CERC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income (loss) | $ 1,486 | $ (773) | $ 791 |
Other comprehensive income (loss): | |||
Adjustment to pension and other postretirement plans | 21 | (5) | 12 |
Net current period other comprehensive income (loss) | 26 | 8 | 10 |
Comprehensive income (loss) available to common shareholders | 1,417 | (941) | 684 |
CERC Corp | |||
Net income (loss) | 254 | 81 | 212 |
Other comprehensive income (loss): | |||
Adjustment to pension and other postretirement plans | 0 | 0 | 5 |
Net current period other comprehensive income (loss) | 0 | 0 | 5 |
Comprehensive income (loss) available to common shareholders | $ 254 | $ 81 | $ 217 |
STATEMENTS OF CONSOLIDATED CO_6
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME - CERC (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Adjustment to other postemployment plans, tax | $ 7 | $ 0 | $ 4 |
CERC Corp | |||
Adjustment to other postemployment plans, tax | $ 1 | $ 1 | $ 2 |
CONSOLIDATED BALANCE SHEETS - C
CONSOLIDATED BALANCE SHEETS - CERC - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 230 | $ 147 |
Accounts receivable, less allowance for credit losses | 690 | 676 |
Accrued unbilled revenue, less allowance for credit losses | 513 | 505 |
Materials and supplies | 422 | 297 |
Natural gas and coal inventory | 186 | 203 |
Taxes receivable | 1 | 82 |
Current assets held for sale | 2,338 | 0 |
Regulatory assets | 1,395 | 18 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 132 | 121 |
Total current assets | 7,355 | 2,920 |
Property, Plant and Equipment, net | 23,484 | 22,362 |
Other Assets: | ||
Goodwill | 4,294 | 4,697 |
Regulatory assets ($420 and $633 related to VIEs, respectively) | 2,321 | 2,094 |
Other non-current assets | 220 | 253 |
Total other assets | 6,840 | 8,189 |
Total Assets | 37,679 | 33,471 |
Current Liabilities: | ||
Short-term borrowings | 7 | 24 |
Accounts payable | 1,196 | 853 |
Taxes accrued | 378 | 265 |
Interest accrued | 136 | 145 |
Customer deposits | 111 | 119 |
Current liabilities held for sale | 562 | 0 |
Other | 323 | 432 |
Total current liabilities | 4,287 | 4,825 |
Other Liabilities: | ||
Deferred income taxes, net | 3,904 | 3,603 |
Benefit obligations | 511 | 680 |
Regulatory liabilities | 3,153 | 3,448 |
Other | 836 | 1,019 |
Total other liabilities | 8,416 | 8,777 |
Total long-term debt, net | 15,558 | 11,521 |
Commitments and Contingencies (Note 16) | ||
Shareholders’ Equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 8,529 | 6,914 |
Retained earnings (accumulated deficit) | 154 | (845) |
Accumulated other comprehensive loss | (64) | (90) |
Total shareholders’ equity | 9,415 | 8,348 |
Total Liabilities and Shareholders’ Equity | 37,679 | 33,471 |
CERC Corp | ||
Current Assets: | ||
Cash and cash equivalents | 8 | 1 |
Accounts receivable, less allowance for credit losses | 240 | 233 |
Accrued unbilled revenue, less allowance for credit losses | 247 | 260 |
Accounts and notes receivable—affiliated companies | 16 | 8 |
Materials and supplies | 74 | 58 |
Natural gas and coal inventory | 127 | 121 |
Taxes receivable | 28 | 0 |
Current assets held for sale | 2,084 | 0 |
Regulatory assets | 1,289 | 18 |
Prepaid expense and other current assets ($19 and $15 related to VIEs, respectively) | 15 | 8 |
Total current assets | 4,128 | 707 |
Property, Plant and Equipment, net | 5,763 | 6,558 |
Other Assets: | ||
Goodwill | 611 | 757 |
Regulatory assets ($420 and $633 related to VIEs, respectively) | 577 | 220 |
Other non-current assets | 31 | 66 |
Total other assets | 1,219 | 1,043 |
Total Assets | 11,110 | 8,308 |
Current Liabilities: | ||
Short-term borrowings | 7 | 24 |
Accounts payable | 365 | 296 |
Accounts and notes payable–affiliated companies | 56 | 50 |
Notes payable - affiliated companies | 224 | 0 |
Taxes accrued | 90 | 74 |
Interest accrued | 27 | 28 |
Customer deposits | 63 | 76 |
Current liabilities held for sale | 562 | 0 |
Other | 113 | 178 |
Total current liabilities | 1,507 | 726 |
Other Liabilities: | ||
Deferred income taxes, net | 680 | 584 |
Benefit obligations | 81 | 83 |
Regulatory liabilities | 979 | 1,226 |
Other | 482 | 694 |
Total other liabilities | 2,222 | 2,587 |
Total long-term debt, net | 4,380 | 2,428 |
Commitments and Contingencies (Note 16) | ||
Shareholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 2,226 | 2,046 |
Retained earnings (accumulated deficit) | 765 | 511 |
Accumulated other comprehensive loss | 10 | 10 |
Total shareholders’ equity | 3,001 | 2,567 |
Total Liabilities and Shareholders’ Equity | $ 11,110 | $ 8,308 |
CONSOLIDATED BALANCE SHEETS -_3
CONSOLIDATED BALANCE SHEETS - CERC (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Bad debt reserve | $ 44 | $ 52 |
Accrued unbilled revenues, allowance for credit loss | 6 | 5 |
CERC Corp | ||
Bad debt reserve | 39 | 45 |
Accrued unbilled revenues, allowance for credit loss | $ 5 | $ 4 |
STATEMENTS OF CONSOLIDATED CA_3
STATEMENTS OF CONSOLIDATED CASH FLOWS - CERC - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 1,486 | $ (773) | $ 791 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,316 | 1,189 | 1,225 |
Deferred income taxes | 213 | (429) | 69 |
Goodwill impairment and loss from reclassification to held for sale | 0 | 175 | 48 |
Changes in other assets and liabilities, excluding acquisitions: | |||
Accounts receivable and unbilled revenues, net | (98) | 90 | 226 |
Inventory | (140) | 9 | (52) |
Taxes receivable | 81 | 24 | (106) |
Accounts payable | 175 | 2 | (455) |
Net regulatory assets and liabilities | (2,295) | (107) | (22) |
Other operating activities, net | 85 | 35 | 128 |
Net cash provided by operating activities | 22 | 1,995 | 1,638 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (3,164) | (2,596) | (2,506) |
Proceeds from divestitures (Note 4) | 22 | 1,215 | 0 |
Other investing activities, net | 15 | 36 | 34 |
Net cash used in investing activities | (1,851) | (1,265) | (8,421) |
Cash Flows from Financing Activities: | |||
Proceeds from (payments of) commercial paper, net | 1,132 | (761) | 1,891 |
Proceeds from long-term debt | 4,493 | 799 | 2,916 |
Payments of long-term debt, including make-whole premiums | (2,968) | (1,724) | (1,302) |
Other financing activities, net | (5) | (6) | (14) |
Net cash provided by (used in) financing activities | 1,916 | (834) | 2,776 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 87 | (104) | (4,007) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 167 | 271 | 4,278 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 254 | 167 | 271 |
CERC Corp | |||
Cash Flows from Operating Activities: | |||
Net income (loss) | 254 | 81 | 212 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 326 | 304 | 293 |
Deferred income taxes | 77 | 91 | 7 |
Goodwill impairment and loss from reclassification to held for sale | 0 | 93 | 48 |
Changes in other assets and liabilities, excluding acquisitions: | |||
Accounts receivable and unbilled revenues, net | (60) | 151 | 252 |
Accounts receivable/payable–affiliated companies | (4) | 4 | (6) |
Inventory | (54) | 63 | (12) |
Taxes receivable | (28) | 0 | 0 |
Accounts payable | 76 | (72) | (305) |
Net regulatory assets and liabilities | (1,979) | (52) | 76 |
Other current assets and liabilities | (11) | 47 | (91) |
Other assets and liabilities | (45) | 14 | (33) |
Other operating activities, net | 8 | 5 | 25 |
Net cash provided by operating activities | (1,440) | 729 | 466 |
Cash Flows from Investing Activities: | |||
Capital expenditures | (895) | (815) | (776) |
(Increase) decrease in notes receivable–affiliated companies | 0 | (9) | 114 |
Proceeds from divestitures (Note 4) | 22 | 365 | |
Other investing activities, net | 14 | 7 | 0 |
Net cash used in investing activities | (859) | (452) | (662) |
Cash Flows from Financing Activities: | |||
Decrease in short-term borrowings, net | (27) | 0 | 0 |
Proceeds from (payments of) commercial paper, net | 552 | (30) | 167 |
Proceeds from long-term debt | 1,699 | 500 | 0 |
Payments of long-term debt, including make-whole premiums | (311) | (593) | 0 |
Payment of debt issuance costs | (10) | (4) | 0 |
Dividend to parent | 0 | (80) | (120) |
Contribution from parent | 180 | 217 | 129 |
Capital distribution to parent associated with the sale of CES | 0 | (286) | 0 |
Increase (decrease) in notes payable–affiliated companies | 224 | 0 | 0 |
Other financing activities, net | (1) | (2) | (3) |
Net cash provided by (used in) financing activities | 2,306 | (278) | 173 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 7 | (1) | (23) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 1 | 2 | 25 |
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 8 | $ 1 | $ 2 |
STATEMENTS OF CONSOLIDATED CH_4
STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY - CERC - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | CERC Corp | CERC CorpCommon Stock | CERC CorpAdditional Paid-in-Capital | CERC CorpAdditional Paid-in-CapitalDiscontinued Operations | CERC CorpRetained Earnings (Accumulated Deficit) | CERC CorpRetained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | CERC CorpAccumulated Other Comprehensive Loss |
Balance, beginning of year (in shares) at Dec. 31, 2018 | 501,000,000 | 1,000 | |||||||||||
Balance, end of year (in shares) at Dec. 31, 2019 | 502,000,000 | 1,000 | |||||||||||
Balance, beginning of year at Dec. 31, 2018 | $ 5 | $ 6,072 | $ 349 | $ 0 | $ (108) | $ 0 | $ 2,015 | $ 423 | $ 5 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cash contribution from parent | 129 | ||||||||||||
Other | 0 | $ 0 | |||||||||||
Capital distribution to parent associated with Internal Spin | (28) | ||||||||||||
Net income (loss) | $ 791 | 791 | $ 212 | 212 | |||||||||
Dividend to parent | (120) | ||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||||||
Other comprehensive income | 10 | 5 | |||||||||||
Balance, end of year at Dec. 31, 2019 | $ 8,359 | $ 5 | 6,080 | 632 | (7) | (98) | 2,641 | $ 0 | 2,116 | 515 | $ (5) | 10 | |
Balance, end of year (in shares) at Dec. 31, 2020 | 551,355,861 | 551,000,000 | 1,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cash contribution from parent | 217 | ||||||||||||
Other | (1) | (286) | |||||||||||
Capital distribution to parent associated with Internal Spin | 0 | ||||||||||||
Net income (loss) | $ (773) | (773) | 81 | 81 | |||||||||
Dividend to parent | (80) | ||||||||||||
Other comprehensive income | 8 | 0 | |||||||||||
Balance, end of year at Dec. 31, 2020 | $ 8,348 | $ 6 | 6,914 | (845) | $ 0 | (90) | 2,567 | $ 0 | 2,046 | 511 | 10 | ||
Balance, end of year (in shares) at Dec. 31, 2021 | 628,923,534 | 629,000,000 | 1,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cash contribution from parent | 180 | ||||||||||||
Other | 0 | $ 0 | |||||||||||
Capital distribution to parent associated with Internal Spin | 0 | ||||||||||||
Net income (loss) | $ 1,486 | 1,486 | 254 | 254 | |||||||||
Dividend to parent | 0 | ||||||||||||
Other comprehensive income | 26 | 0 | |||||||||||
Balance, end of year at Dec. 31, 2021 | $ 9,415 | $ 6 | $ 8,529 | $ 154 | $ (64) | $ 3,001 | $ 0 | $ 2,226 | $ 765 | $ 10 |
Background
Background | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background General. This combined Form 10-K is filed separately by three registrants: CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp. Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other Registrants or the subsidiaries of CenterPoint Energy other than itself or its subsidiaries. Except as discussed in Note 14 to the Registrants’ Consolidated Financial Statements, no registrant has an obligation in respect of any other Registrant’s debt securities, and holders of such debt securities should not consider the financial resources or results of operations of any Registrant other than the obligor in making a decision with respect to such securities. Included in this combined Form 10-K are the Financial Statements of CenterPoint Energy, Houston Electric and CERC, which are referred to collectively as the Registrants. The Combined Notes to the Consolidated Financial Statements apply to all Registrants and specific references to Houston Electric and CERC herein also pertain to CenterPoint Energy, unless otherwise indicated. Background. CenterPoint Energy, Inc. is a public utility holding company. As of December 31, 2021, CenterPoint Energy’s operating subsidiaries were as follows: • Houston Electric owns and operates electric transmission and distribution facilities in the Texas gulf coast area that includes the city of Houston; and • CERC Corp. (i) owns and operates natural gas distribution systems in six states and (ii) owns and operates permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. • Vectren holds three public utilities through its wholly-owned subsidiary, VUHI, a public utility holding company: ◦ Indiana Gas provides energy delivery services to natural gas customers located in central and southern Indiana; ◦ SIGECO provides energy delivery services to electric and natural gas customers located in and near Evansville in southwestern Indiana and owns and operates electric generation assets to serve its electric customers and optimizes those assets in the wholesale power market; and ◦ VEDO provides energy delivery services to natural gas customers located in and near Dayton in west-central Ohio. • Vectren performs non-utility activities through Energy Systems Group, which provides energy performance contracting and sustainable infrastructure services, such as renewables, distributed generation and combined heat and power projects. For a description of CenterPoint Energy’s reportable segments, see Note 18. Houston Electric consists of a single reportable segment, Houston Electric T&D and CERC consists of a single reportable segment, Natural Gas. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (b) Principles of Consolidation The accounts of the Registrants and their wholly-owned and majority-owned and controlled subsidiaries are included in the consolidated financial statements. All intercompany transactions and balances are eliminated in consolidation, except as described below. Businesses within the Infrastructure Services Disposal Group provided underground pipeline construction and repair services for customers that included Natural Gas utilities. In accordance with consolidation guidance in ASC 980—Regulated Operations, costs incurred by Natural Gas utilities for these pipeline construction and repair services were not eliminated in consolidation when capitalized and included in rate base by the Natural Gas utility. On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group. The transaction closed on April 9, 2020. For further information, see Note 4. As of December 31, 2021, CenterPoint Energy and Houston Electric had VIEs consisting of the Bond Companies, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy remote special purpose entities that were formed solely for the purpose of securitizing transition and system restoration related property. Creditors of CenterPoint Energy and Houston Electric have no recourse to any assets or revenues of the Bond Companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property and the bondholders have no recourse to the general credit of CenterPoint Energy or Houston Electric. (c) Equity Method and Investments without a Readily Determinable Fair Value (CenterPoint Energy) CenterPoint Energy uses the equity method for investments in entities when it exercises significant influence, does not have control and is not considered the primary beneficiary, if applicable. Generally, equity investments in limited partnerships with interest greater than approximately 3-5% is accounted for under the equity method. Under the equity method, CenterPoint Energy adjusts its investments each period for contributions made, distributions received, respective shares of comprehensive income and amortization of basis differences, as appropriate. CenterPoint Energy evaluates its equity method investments for impairment when events or changes in circumstances indicate there is a loss in value of the investment that is other than a temporary decline. CenterPoint Energy considers distributions received from equity method investments which do not exceed cumulative equity in earnings subsequent to the date of investment to be a return on investment and classifies these distributions as operating activities in its Statements of Consolidated Cash Flows. CenterPoint Energy considers distributions received from equity method investments in excess of cumulative equity in earnings subsequent to the date of investment to be a return of investment and classifies these distributions as investing activities in its Statements of Consolidated Cash Flows. Investments without a readily determinable fair value will be measured at cost, less impairment, plus or minus observable prices changes of an identical or similar investment of the same issuer. (d) Revenues The Registrants record revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on actual AMS/AMI data, supply volumes, estimated line loss and applicable tariff rates. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. For further discussion, see Note 5. (e) MISO Transactions Indiana Electric is a member of the MISO. MISO-related purchase and sale transactions are recorded using settlement information provided by the MISO. These purchase and sale transactions are accounted for on at least a net hourly position, meaning net purchases within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility natural gas, fuel and purchased power, and net sales within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility revenues. On occasion, prior period transactions are resettled outside the routine process due to a change in the MISO’s tariff or a material interpretation thereof. Expenses associated with resettlements are recorded once the resettlement is probable and the resettlement amount can be estimated. Revenues associated with resettlements are recognized when the amount is determinable and collectability is reasonably assured. (f) Guarantees CenterPoint Energy recognizes guarantee obligations at fair value. CenterPoint Energy discloses parent company guarantees of a subsidiary’s obligation when that guarantee results in the exposure of a material obligation of the parent company even if the probability of fulfilling such obligation is considered remote. See Note 16(c) and (d). (g) Long-lived Assets, Goodwill and Intangibles The Registrants record property, plant and equipment at historical cost and expense repair and maintenance costs as incurred. The Registrants periodically evaluate long-lived assets, including property, plant and equipment, and specifically identifiable intangibles subject to amortization, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. For rate regulated businesses, recoverability of long-lived assets is assessed by determining if a capital disallowance from a regulator is probable through monitoring the outcome of rate cases and other proceedings. For non-rate regulated businesses, recoverability is assessed based on an estimate of undiscounted cash flows attributable to the assets compared to the carrying value of the assets. No long-lived asset or intangible asset impairments were recorded in 2021, 2020 or 2019. CenterPoint Energy and CERC perform goodwill impairment tests at least annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. CenterPoint Energy and CERC recognize a goodwill impairment by the amount a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill within that reporting unit. CenterPoint Energy includes deferred tax assets and liabilities within its reporting unit’s carrying value for the purposes of annual and interim impairment tests, regardless of whether the estimated fair value reflects the disposition of such assets and liabilities. For further information about the goodwill impairment tests during 2021, see Note 6. (h) Assets Held for Sale and Discontinued Operations Generally, a long-lived asset to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, as applicable, commits to a plan to sell and a sale is expected to be completed within one year. The Registrants record assets and liabilities held for sale at the lower of their carrying value or their estimated fair value less cost to sell. If the disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. Goodwill is not allocated to a portion of a reporting unit that does not meet the definition of a business. A disposal group that meets the held for sale criteria and also represents a strategic shift to the Registrant, is also reflected as discontinued operations on the Statements of Consolidated Income, and prior periods are recast to reflect the earnings or losses from such businesses as income from discontinued operations, net of tax. (i) Regulatory Assets and Liabilities The Registrants apply the guidance for accounting for regulated operations within the Electric reportable segment and the Natural Gas reportable segment. The Registrants’ rate-regulated subsidiaries may collect revenues subject to refund pending final determination in rate proceedings. In connection with such revenues, estimated rate refund liabilities are recorded which reflect management’s current judgment of the ultimate outcomes of the proceedings. The Registrants’ rate-regulated businesses recognize removal costs as a component of depreciation expense in accordance with regulatory treatment. In addition, a portion of the amount of removal costs collected from customers that relate to AROs has been reflected as an asset retirement liability in accordance with accounting guidance for AROs. For further detail on the Registrants’ regulatory assets and liabilities, see Note 7. (j) Depreciation and Amortization Expense The Registrants compute depreciation and amortization using the straight-line method based on economic lives or regulatory-mandated recovery periods. Amortization expense includes amortization of certain regulatory assets and other intangibles. (k) Capitalization of Interest and AFUDC The Registrants capitalize interest and AFUDC as a component of projects under construction and amortize it over the assets’ estimated useful lives once the assets are placed in service. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. Although AFUDC increases both utility plant and earnings, it is realized in cash when the assets are included in rates. Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Interest and AFUDC debt (1) $ 34 $ 13 $ 2 $ 27 $ 8 $ 3 $ 36 $ 8 $ 3 AFUDC equity (2) 28 20 3 25 14 3 22 15 3 (1) Included in Interest and other finance charges on the Registrants’ respective Statements of Consolidated Income, inclusive of $16 million, $13 million and $21 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2021, 2020 and 2019, respectively. (2) Included in Other Income (Expense) on the Registrants’ respective Statements of Consolidated Income. (l) Income Taxes Houston Electric and CERC are included in CenterPoint Energy’s U.S. federal consolidated income tax return. Houston Electric and CERC report their income tax provision on a separate entity basis pursuant to a tax sharing agreement with CenterPoint Energy. Current federal and certain state income taxes are payable to or receivable from CenterPoint Energy. The Registrants use the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is established against deferred tax assets for which management believes realization is not considered to be more likely than not. The Registrants recognize interest and penalties as a component of income tax expense (benefit), as applicable, in their respective Statements of Consolidated Income. CenterPoint Energy reports the income tax provision associated with its interest in Enable in income tax expense (benefit) in its Statements of Consolidated Income. To the extent certain EDIT of the Registrants’ rate-regulated subsidiaries may be recoverable or payable through future rates, regulatory assets and liabilities have been recorded, respectively. See Note 15 for further discussion. The Registrants use the portfolio approach to recognize income tax effects on other comprehensive income from accumulated other comprehensive income. Investment tax credits are deferred and amortized to income over the approximate lives of the related property. (m) Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews historical write-offs, current available information, and reasonable and supportable forecasts to estimate and establish allowance for credit losses. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. See Note 7 for further information about regulatory deferrals of bad debt expense related to COVID-19. (n) Inventory The Registrants’ inventory consists principally of materials and supplies, and for CERC, natural gas, and for CenterPoint Energy, coal inventory. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Certain natural gas in storage at CenterPoint Energy’s and CERC’s utilities are recorded using the LIFO method. CenterPoint Energy’s and CERC’s balances in inventory that were valued using LIFO method were as follows: Year Ended December 31, 2021 (1) 2020 2021 (1) 2020 (1) CenterPoint Energy CERC (in millions) LIFO inventory $ 101 $ 92 $ 56 $ 55 (1) Based on the average cost of gas purchased during December 2021, CenterPoint Energy’s and CERC’s cost of replacing inventories carried at LIFO cost was less than the carrying value at December 31, 2021 by $48 million and $-0-, respectively. (o) Derivative Instruments The Registrants are exposed to various market risks. These risks arise from transactions entered into in the normal course of business. The Registrants, from time to time, utilize derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on operating results and cash flows. Such derivatives are recognized in the Registrants’ Consolidated Balance Sheets at their fair value unless the Registrant elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or normal sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy elected to record changes in the fair value of amounts excluded from the assessment of effectiveness immediately in its Statements of Consolidated Income. (p) Investments in Equity Securities (CenterPoint Energy) CenterPoint Energy reports equity securities at estimated fair value in the Consolidated Balance Sheets, and any gains and losses, net of any transaction costs, are recorded as Gain (Loss) on Equity Securities in the Statements of Consolidated Income. (q) Environmental Costs The Registrants expense or capitalize environmental expenditures, as appropriate, depending on their future economic benefit. The Registrants expense amounts that relate to an existing condition caused by past operations that do not have future economic benefit. The Registrants record undiscounted liabilities related to these future costs when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. (r) Cash and Cash Equivalents and Restricted Cash For purposes of reporting cash flows, the Registrants consider cash equivalents to be short-term, highly-liquid investments with maturities of three months or less from the date of purchase. Cash and cash equivalents held by the Bond Companies (VIEs) solely to support servicing the Securitization Bonds as of December 31, 2021 and 2020 are reflected on CenterPoint Energy’s and Houston Electric’s Consolidated Balance Sheets. In connection with the issuance of Securitization Bonds, CenterPoint Energy and Houston Electric were required to establish restricted cash accounts to collateralize the bonds that were issued in these financing transactions. These restricted cash accounts are not available for withdrawal until the maturity of the bonds and are not included in cash and cash equivalents. For more information on restricted cash see Note 19. (s) Preferred Stock and Dividends Preferred stock is evaluated to determine balance sheet classification, and all conversion and redemption features are evaluated for bifurcation treatment. Proceeds received net of issuance costs are recognized on the settlement date. Cash dividends become a liability once declared. Income available to common stockholders is computed by deducting from net income the dividends accumulated and earned during the period on cumulative preferred stock. (t) Purchase Accounting The Registrants evaluate acquisitions to determine when a set of acquired activities and assets represent a business. When control of a business is obtained, the Registrants apply the acquisition method of accounting and record the assets acquired, liabilities assumed and any non-controlling interest obtained based on fair value at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the net assets acquired is recorded as goodwill. The results of operations of the acquired business are included in the Registrants’ respective Statements of Consolidated Income beginning on the date of the acquisition. (u) New Accounting Pronouncements Management believes that other recently adopted and recently issued accounting standards that are not yet effective will not have a material impact on the Registrants’ financial position, results of operations or cash flows upon adoption. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (a) Property, Plant and Equipment Property, plant and equipment includes the following: December 31, 2021 December 31, 2020 Weighted Average Useful Lives Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net (in years) (in millions) CenterPoint Energy Electric transmission and distribution 36 $ 17,156 $ 4,658 $ 12,498 $ 15,225 $ 4,785 $ 10,440 Electric generation (1) 26 1,807 1,179 628 1,922 754 1,168 Natural gas distribution 30 13,578 3,981 9,597 14,022 4,019 10,003 Finance ROU asset mobile generation 7.5 179 — 179 — — — Other property 16 953 371 582 1,345 594 751 Total $ 33,673 $ 10,189 $ 23,484 $ 32,514 $ 10,152 $ 22,362 Houston Electric Electric transmission and distribution 38 $ 13,321 $ 3,502 $ 9,819 $ 11,911 $ 3,396 $ 8,515 Finance ROU asset mobile generation 7.5 179 — 179 — — — Other property 19 1,773 568 1,205 1,682 534 1,148 Total $ 15,273 $ 4,070 $ 11,203 $ 13,593 $ 3,930 $ 9,663 CERC Natural gas distribution 29 $ 7,833 $ 2,093 $ 5,740 $ 8,928 $ 2,392 $ 6,536 Other property 19 45 22 23 44 22 22 Total $ 7,878 $ 2,115 $ 5,763 $ 8,972 $ 2,414 $ 6,558 (1) SIGECO and AGC own a 300 MW unit at the Warrick Power Plant (Warrick Unit 4) as tenants in common. SIGECO’s share of the cost of this unit as of December 31, 2021, is $196 million with accumulated depreciation totaling $154 million. AGC and SIGECO share equally in the cost of operation and output of the unit. SIGECO’s share of operating costs is included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income. (b) Depreciation and Amortization The following table presents depreciation and amortization expense for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Depreciation $ 1,024 $ 391 $ 311 $ 961 $ 368 $ 289 $ 879 $ 339 $ 277 Amortization of securitized regulatory assets 213 213 — 155 155 — 271 271 — Other amortization 79 38 15 73 37 15 75 38 16 Total $ 1,316 $ 642 $ 326 $ 1,189 $ 560 $ 304 $ 1,225 $ 648 $ 293 (c) AROs The Registrants recorded AROs associated with the removal of asbestos and asbestos-containing material in its buildings, including substation building structures. CenterPoint Energy recorded AROs relating to the closure of the ash ponds at A.B. Brown and F.B. Culley. CenterPoint Energy and Houston Electric also recorded AROs relating to treated wood poles for electric distribution, distribution transformers containing PCB (also known as Polychlorinated Biphenyl), and underground fuel storage tanks. CenterPoint Energy and CERC also recorded AROs relating to gas pipelines abandoned in place. The estimates of future liabilities were developed using historical information, and where available, quoted prices from outside contractors. A reconciliation of the changes in the ARO liability recorded in Other non-current liabilities on each of the Registrants’ respective Consolidated Balance Sheets is as follows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning balance $ 787 $ 43 $ 571 $ 539 $ 42 $ 325 Accretion expense (1) 21 1 12 16 1 11 Revisions in estimates (2) (67) (2) (93) 232 — 235 Ending balance $ 741 $ 42 $ 490 $ 787 $ 43 $ 571 (1) Reflected in Regulatory assets on each of the Registrants’ respective Consolidated Balance Sheets. |
Held for Sale, Divestitures and
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) | (4) Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) Held for Sale Held for Sale. On April 29, 2021, CenterPoint Energy, through its subsidiary CERC Corp., entered into an Asset Purchase Agreement to sell its Arkansas and Oklahoma Natural Gas businesses for $2.15 billion in cash, including recovery of approximately $425 million in gas cost, including storm-related incremental natural gas costs incurred in the February 2021 Winter Storm Event, subject to certain adjustments set forth in the Asset Purchase Agreement. The assets include approximately 17,000 miles of main pipeline in Arkansas, Oklahoma and certain portions of Bowie County, Texas serving more than half a million customers. The Arkansas and Oklahoma Natural Gas businesses are reflected in CenterPoint Energy’s Natural Gas reportable segment and CERC’s single reportable segment, as applicable. Filings were made on June 11, 2021 to the APSC and June 24, 2021 to the OCC requesting approval of the transaction. On August 18, 2021, the Hart-Scott-Rodino antitrust waiting period expired. On October 14, 2021, a unanimous settlement agreement was filed with the APSC resolving all matters associated with the sale and the FRP. As part of the settlement agreement, CERC committed to provide $22 million in cash at the closing of the transaction, which will be passed through to Arkansas customers. CERC also committed to return any insurance proceeds it may receive for claims submitted with respect to Arkansas, if any, for costs incurred as part of the February 2021 Winter Storm Event to reduce the balance of the incurred costs. The settlement agreement also provides for the extinguishment of CERC’s obligation to refund through the FRP approximately $10 million as of December 31, 2021. On November 16, 2021, the OCC issued its order approving the transaction, and the order became non-appealable on December 16, 2021. On December 6, 2021, the APSC issued its order approving the transaction, and the order became non-appealable on January 5, 2022. The transaction closed on January 10, 2022. In April 2021, certain assets and liabilities representing the Arkansas and Oklahoma Natural Gas businesses met the held for sale criteria. The sale is considered an asset sale for tax purposes, requiring net deferred tax liabilities to be excluded from held for sale balances. The deferred taxes associated with the businesses were recognized as a deferred income tax benefit by CenterPoint Energy and CERC upon closing in 2022. Although the Arkansas and Oklahoma Natural Gas businesses met the held for sale criteria, their disposals do not represent a strategic shift to CenterPoint Energy and CERC, as both will retain significant operations in, and will continue to invest in, their natural gas businesses. Therefore, the assets and liabilities associated with the transaction are not reflected as discontinued operations on CenterPoint Energy’s and CERC’s Statements of Consolidated Income, as applicable, and the December 31, 2020 Consolidated Balance Sheets were not required to be recast for assets held for sale. Since the depreciation on the Arkansas and Oklahoma Natural Gas assets continued to be reflected in revenues through customer rates until the closing of the transaction and will be reflected in the carryover basis of the rate-regulated assets, CenterPoint Energy and CERC continued to record depreciation on those assets through the closing of the transaction. In September 2021, CNP Midstream entered into the Forward Sale Agreement to sell certain Energy Transfer Common Units upon the completion of the Enable Merger. Additionally, CenterPoint Energy’s announced plan to exit its Midstream Investment reportable segment by the end of 2022 represented a strategic shift that will have a major effect on CenterPoint Energy’s operations or financial results, and as such, its equity investment in Enable are classified and presented as discontinued operations. Equity method investments that qualify for discontinued operations are also presented as assets held for sale. Therefore, the equity in earnings (loss) of unconsolidated affiliates, net of tax, associated with the equity investment in Enable are reflected as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income, and the December 31, 2020 Consolidated Balance Sheet was required to be recast for assets held for sale. For further information about CenterPoint Energy’s equity investment in Enable, see Note 11. The Registrants record assets and liabilities held for sale at the lower of their carrying value or their estimated fair value less cost to sell. Neither CenterPoint Energy nor CERC recognized any gains or losses on the measurement of assets held for sale during the year ended December 31, 2021. See Note 6 for further information about the allocation of goodwill to the businesses to be disposed. The assets and liabilities of the Arkansas and Oklahoma Natural Gas businesses and equity method investment in Enable classified as held for sale in CenterPoint Energy’s and CERC’s Consolidated Balance Sheets, as applicable, included the following: December 31, 2021 CenterPoint Energy CERC (in millions) Receivables, net $ 46 $ 46 Accrued unbilled revenues 48 48 Natural gas inventory 46 46 Materials and supplies 9 9 Property, plant and equipment, net 1,314 1,314 Goodwill 398 144 Investment in unconsolidated affiliate (1) — — Regulatory assets 471 471 Other 6 6 Total current assets held for sale $ 2,338 $ 2,084 December 31, 2021 CenterPoint Energy CERC (in millions) Short term borrowings (2) $ 36 $ 36 Accounts payable 40 40 Taxes accrued 7 7 Customer deposits 12 12 Regulatory liabilities 365 365 Other 102 102 Total current liabilities held for sale $ 562 $ 562 (1) Balance of $782 million as of December 31, 2020 is reported as Non-current assets held for sale on CenterPoint Energy’s Consolidated Balance Sheets. (2) Represents third-party AMAs associated with utility distribution service in Arkansas and Oklahoma. These transactions are accounted for as an inventory financing. For further information, see Notes 14 and 16. The pre-tax income for the Arkansas and Oklahoma Natural Gas businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Statements of Consolidated Income is as follows: Year Ended December 31, 2021 2020 (in millions) Income from Continuing Operations Before Income Taxes $ 78 $ 73 Discontinued Operations Enable Merger. On December 2, 2021, Enable, completed the previously announced Enable Merger pursuant to the Enable Merger Agreement entered into on February 16, 2021. Pursuant to the terms of the Enable Merger Agreement, (i) Elk Merger Sub merged with and into Enable, with Enable surviving as a wholly owned subsidiary of Energy Transfer, (ii) Elk GP Merger Sub merged with and into Enable GP, with Enable GP surviving as a direct wholly owned subsidiary of Energy Transfer and (iii) CenterPoint Energy contributed, assigned, transferred, conveyed and delivered to Energy Transfer, and Energy Transfer acquired, assumed, accepted and received from CenterPoint Energy, all of CenterPoint Energy’s right, title and interest in each Enable Series A Preferred Units issued and outstanding at such time in exchange for 0.0265 newly issued Energy Transfer Series G Preferred Units for each Enable Series A Preferred Unit. Upon the consummation of the transactions contemplated by the Enable Merger Agreement, the agreements relating to Enable between CenterPoint Energy, OGE and Enable and certain of their affiliates terminated, and CenterPoint Energy paid $30 million to OGE. The Enable Series A Preferred Units are accounted for under Topic 321 - Investments - Equity Securities and are out of scope for held-for-sale and discontinued operations guidance. At the closing of the Enable Merger on December 2, 2021, Energy Transfer acquired 100% of Enable’s outstanding common units, resulting in the exchange of Enable Common Units owned by CenterPoint Energy at the Enable Merger exchange ratio of 0.8595x Energy Transfer Common Units for each Enable Common Unit. CenterPoint Energy also received $5 million in cash in exchange for its interest in the Enable GP. See Note 19 for supplemental information regarding the non-cash exchange transaction. See Note 12 for further information regarding Energy Transfer security equities. Divestiture of Infrastructure Services (CenterPoint Energy). On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group to PowerTeam Services. Subject to the terms and conditions of the Securities Purchase Agreement, PowerTeam Services agreed to purchase all of the outstanding equity interests of VISCO for approximately $850 million, subject to customary adjustments set forth in the Securities Purchase Agreement, including adjustments based on VISCO’s net working capital at closing, indebtedness, cash and cash equivalents and transaction expenses. The transaction closed on April 9, 2020 for $850 million in cash, subject to the working capital adjustment. Additionally, as of December 31, 2020, CenterPoint Energy had a receivable from PowerTeam Services for working capital and other adjustments set forth in the Security Purchase Agreement. CenterPoint Energy collected a receivable of $4 million from PowerTeam Services in January 2021 for full and final settlement of the working capital adjustment under the Securities Purchase Agreement. In February 2020, certain assets and liabilities representing the Infrastructure Services Disposal Group met the held for sale criteria and represented all of the businesses within the reporting unit. In accordance with the Securities Purchase Agreement, VISCO was converted from a wholly-owned corporation to a limited liability company that was disregarded for federal income tax purposes immediately prior to the closing of the transaction resulting in the sale of membership units. The sale was considered an asset sale for tax purposes, requiring net deferred tax liabilities of approximately $129 million as of April 9, 2020, the date the transaction closed, to be recognized as a deferred income tax benefit by CenterPoint Energy. Additionally, CenterPoint Energy recognized a current tax expense of $158 million during the year ended December 31, 2020, as a result of the cash taxes payable upon sale. Upon classifying the Infrastructure Services Disposal Group as held for sale and in connection with the preparation of CenterPoint Energy’s financial statements as of March 31, 2020, CenterPoint Energy recorded a goodwill impairment of approximately $82 million, plus an additional loss of $14 million for cost to sell, during the year ended December 31, 2020. Additionally, CenterPoint Energy recognized a net pre-tax loss of $6 million in connection with the closing of the disposition of the Infrastructure Services Disposal Group during the year ended December 31, 2020, respectively. In the Securities Purchase Agreement, CenterPoint Energy agreed to a mechanism to reimburse PowerTeam Services subsequent to closing of the sale for certain amounts of specifically identified change orders that may be ultimately rejected by one of VISCO’s customers as part of on-going audits. CenterPoint Energy’s maximum contractual exposure under the Securities Purchase Agreement, in addition to the amount reflected in the working capital adjustment, for these change orders is $21 million. CenterPoint Energy does not expect the ultimate outcome of this matter to have a material adverse effect on its financial condition, results of operations or cash flows. CenterPoint Energy anticipates this matter will be resolved in 2022. Divestiture of Energy Services (CenterPoint Energy and CERC). On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group to Symmetry Energy Solutions Acquisition. This transaction did not include CEIP and its assets or MES. Symmetry Energy Solutions Acquisition agreed to purchase all of the outstanding equity interests of the Energy Services Disposal Group for approximately $400 million, subject to customary adjustments set forth in the Equity Purchase Agreement, and inclusive of an estimate of the cash adjustment for the Energy Services Disposal Group’s net working capital at closing, indebtedness and transaction expenses. The transaction closed on June 1, 2020 for approximately $286 million in cash, subject to the working capital adjustment. CenterPoint Energy collected a receivable of $79 million from Symmetry Energy Solutions Acquisition in October 2020 for full and final settlement of the working capital adjustment under the Equity Purchase Agreement. In February 2020, certain assets and liabilities representing the Energy Services Disposal Group met the criteria to be classified as held for sale and represented substantially all of the businesses within the reporting unit. In accordance with the Equity Purchase Agreement, CES was converted from a wholly-owned corporation to a limited liability company that is disregarded for federal income tax purposes immediately prior to the closing of the transaction resulting in the sale of membership units. The sale was considered an asset sale for tax purposes, requiring the net deferred tax liability of approximately $4 million as of June 1, 2020, the date the transaction closed, to be recognized as a deferred tax benefit by CenterPoint Energy and CERC upon closing. Additionally, CenterPoint Energy and CERC recognized current tax expense of $4 million during the year ended December 31, 2020, respectively, as a result of the cash taxes payable upon sale. Upon classifying the Energy Services Disposal Group as held for sale and in connection with the preparation of CenterPoint Energy’s and CERC’s respective financial statements as of March 31, 2020, CenterPoint Energy and CERC recorded a goodwill impairment of approximately $62 million during the year ended December 31, 2020. Additionally, CenterPoint Energy recognized a loss on assets held for sale of approximately $31 million, plus an additional loss $6 million for cost to sell, recorded only at CenterPoint Energy during the year ended December 31, 2020, respectively. CenterPoint Energy and CERC recognized a gain on sale of $3 million during the year ended December 31, 2020. As a result of the sale of the Energy Services and Infrastructure Services Disposal Groups, there were no assets or liabilities classified as held for sale as of December 31, 2020. Because the Infrastructure Services and Energy Services Disposal Groups met the held for sale criteria and their disposals also represent a strategic shift to CenterPoint Energy and CERC, as applicable, the earnings and expenses directly associated with these dispositions, including operating results of the businesses through the date of sale, are reflected as discontinued operations on CenterPoint Energy’s and CERC’s Statements of Consolidated Income, as applicable. As a result, prior periods have also been recast to reflect the earnings or losses from such businesses as income from discontinued operations, net of tax. A summary of discontinued operations presented in CenterPoint Energy’s Statements of Consolidated Income is as follows: Year Ended December 31, 2021 Equity Method Investment in Enable (in millions) Equity in earnings of unconsolidated affiliate, net $ 1,019 Income from discontinued operations before income taxes 1,019 Income tax expense 201 Net income from discontinued operations $ 818 Year Ended December 31, 2020 Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group Total (in millions) Revenues $ — $ 250 $ 1,167 $ 1,417 Expenses: Non-utility cost of revenues — 50 1,108 1,158 Operation and maintenance — 184 34 218 Taxes other than income taxes — 1 3 4 Total — 235 1,145 1,380 Operating income — 15 22 37 Equity in losses of unconsolidated affiliate, net (1) (1,428) — — (1,428) Income (loss) from Discontinued Operations before income taxes (1,428) 15 22 (1,391) Loss on classification to held for sale, net (2) — (102) (96) (198) Income tax expense (benefit) (354) 24 (3) (333) Net loss from Discontinued Operations $ (1,074) $ (111) $ (71) $ (1,256) Year Ended December 31, 2019 Equity Method Investment in Enable Infrastructure Services Disposal Group (3) Energy Services Disposal Group Total (in millions) Revenues $ — $ 1,190 $ 3,767 $ 4,957 Expenses: Non-utility cost of revenues — 309 3,597 3,906 Operation and maintenance — 714 68 782 Depreciation and amortization — 50 12 62 Taxes other than income taxes — 2 2 4 Goodwill Impairment — — 48 48 Total — 1,075 3,727 4,802 Operating income — 115 40 155 Equity in earnings of unconsolidated affiliate, net (4) 229 — — 229 Income from Discontinued Operations before income taxes 229 115 40 384 Income tax expense 62 29 17 108 Net income from Discontinued Operations $ 167 $ 86 $ 23 $ 276 (1) CenterPoint Energy recognized a loss of $1,428 million from its investment in Enable for the year ended December 31, 2020. This loss included an impairment charge on CenterPoint Energy’s investment in Enable of $1,541 million and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment. (2) Loss from classification to held for sale is inclusive of goodwill impairments, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. (3) Reflects February 1, 2019 to December 31, 2019 results only due to the Merger. (4) Includes CenterPoint Energy’s share of Enable’s $86 million goodwill impairment recorded in the fourth quarter of 2019. A summary of the Energy Services Disposal Group presented as discontinued operations in CERC’s Statements of Consolidated Income, as applicable, is as follows: Year Ended December 31, 2020 2019 CERC (in millions) Revenues $ 1,167 $ 3,767 Expenses: Non-utility cost of revenues 1,108 3,597 Operation and maintenance 34 68 Depreciation and amortization — 12 Taxes other than income taxes 3 2 Goodwill Impairment — 48 Total 1,145 3,727 Income from Discontinued Operations before income taxes 22 40 Loss on classification to held for sale, net (1) (90) — Income tax expense (benefit) (2) 17 Net income (loss) from Discontinued Operations $ (66) $ 23 (1) Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. CenterPoint Energy and CERC have elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. Except as discussed in Note 2, l ong-lived assets are not depreciated or amortized once they are classified as held for sale. The following table summarizes CenterPoint Energy’s and CERC’s cash flows from discontinued operations and certain supplemental cash flow disclosures as applicable: Year Ended December 31, 2021 CenterPoint Energy Equity Method Investment in Enable (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Gain on Enable Merger $ (681) Equity in earnings of unconsolidated affiliate (339) Distributions from unconsolidated affiliate 155 Cash flows from investing activities: Transaction costs related to the Enable Merger (49) Cash received related to Enable Merger 5 Year Ended December 31, 2020 CenterPoint Energy Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Write-down of natural gas inventory $ — $ — $ 3 Equity in losses of unconsolidated affiliate 1,428 — — Distributions from unconsolidated affiliate 113 — — Cash flows from investing activities: Capital expenditures — 18 3 Distributions from unconsolidated affiliate in excess of cumulative earnings 80 — — Year Ended December 31, 2019 CenterPoint Energy Equity Method Investment in Enable Infrastructure Services Disposal Group (1) Energy Services Disposal Group (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ — $ 50 $ 12 Amortization of intangible assets in Non-utility cost of revenues — 19 — Write-down of natural gas inventory — — 4 Equity in losses of unconsolidated affiliate (229) — — Distributions from unconsolidated affiliate 261 — — Cash flows from investing activities: Capital expenditures — 67 12 Distributions from unconsolidated affiliate in excess of cumulative earnings 42 — — Non-cash transactions: Accounts payable related to capital expenditures — — 2 (1) Reflects February 1, 2019 to December 31, 2019 results only due to the Merger. Year Ended December 31, 2020 2019 CERC Energy Services Disposal Group (in millions) Cash flows from operating activities: Depreciation and amortization $ — $ 12 Write-down of natural gas inventory 3 4 Cash flows from investing activities: Capital expenditures 3 12 Non-cash transactions: Accounts payable related to capital expenditures — 2 Other Sale Related Matters of Infrastructure Services and Energy Services (CenterPoint Energy and CERC). CES provided natural gas supply to CenterPoint Energy’s and CERC’s Natural Gas under contracts executed in a competitive bidding process, with the duration of some contracts extending into 2021. In addition, CERC is the natural gas transportation provider for a portion of CES’s customer base and will continue to be the transportation provider for these customers as long as these customers retain a relationship with the divested CES business. Transactions between CES and CenterPoint Energy’s and CERC’s Natural Gas that were previously eliminated in consolidation have been reflected in continuing operations until the closing of the sale of the Energy Services Disposal Group. Revenues and expenses included in continuing operations were as follows: Year Ended December 31, 2020 (1) 2019 2020 (1) 2019 CenterPoint Energy CERC (in millions) Transportation revenue $ 34 $ 101 $ 34 $ 101 Natural gas expense 48 125 47 124 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Energy Services Disposal Group. In the normal course of business prior to June 1, 2020, the Energy Services Disposal Group through CES traded natural gas under supply contracts and entered into natural gas related transactions under transportation, storage and other contracts. In connection with the Energy Services Disposal Group’s business activities prior to the closing of the sale of the Energy Services Disposal Group on June 1, 2020, CERC Corp. issued guarantees to certain of CES’s counterparties to guarantee the payment of CES’s obligations. For further information, see Note 16. CenterPoint Energy’s and CERC’s Natural Gas businesses had AMAs associated with their utility distribution service in Arkansas, Louisiana and Oklahoma with the Energy Services Disposal Group that expired in March 2021. See Note 16 for further information. The Infrastructure Services Disposal Group provided pipeline construction and repair services to CenterPoint Energy’s and CERC’s Natural Gas. In accordance with consolidation guidance in ASC 980—Regulated Operations, costs incurred by Natural Gas utilities for these pipeline construction and repair services are not eliminated in consolidation when capitalized and included in rate base by the Natural Gas utility. Amounts charged for these services that are not capitalized are included primarily in Operation and maintenance expenses. Fees incurred by CenterPoint Energy’s and CERC’s Natural Gas reportable segment for pipeline construction and repair services are as follows: Year Ended December 31, 2020 (1) 2019 (2) 2020 2019 CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ 34 $ 162 $ — $ 20 Pipeline construction and repair service charges in operations and maintenance expense 1 4 1 4 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group. (2) Represents charges for the period beginning February 1, 2019 through December 31, 2019 due to the Merger. Divestiture of MES (CenterPoint Energy and CERC). CenterPoint Energy, through its subsidiary CERC Corp., completed the sale of MES on August 31, 2021 to Last Mile Energy. Prior to the transaction, MES provided temporary delivery of LNG and CNG throughout the contiguous 48 states and MES was reflected in CenterPoint Energy’s Natural Gas reportable segment and CERC’s single reportable segment, as applicable. The MES disposal does not represent a strategic shift to CenterPoint Energy and CERC, as both will retain significant operations in, and will continue to invest in, their natural gas businesses. Therefore, the assets and liabilities associated with MES are not reflected as discontinued operations on CenterPoint Energy’s and CERC’s Statements of Consolidated Income, as applicable, and the December 31, 2020 Consolidated Balance Sheets were not required to be recast for assets held for sale. CenterPoint Energy and CERC recognized a pre-tax gain on the sale of $8 million and $11 million, respectively, during year ended December 31, 2021. See Note 6 for further information about the allocation of goodwill to the MES disposal. Merger with Vectren. On the Merger Date, pursuant to the Merger Agreement, CenterPoint Energy consummated the previously announced Merger and acquired Vectren for approximately $6 billion in cash. Each share of Vectren common stock issued and outstanding immediately prior to the closing was canceled and converted into the right to receive $72.00 in cash per share, without interest. At the closing, each stock unit payable in Vectren common stock or whose value was determined with reference to the value of Vectren common stock, whether vested or unvested, was canceled with cash consideration paid in accordance with the terms of the Merger Agreement. These amounts did not include a stub period cash dividend of $0.41145 per share, which was declared, with CenterPoint Energy’s consent, by Vectren’s board of directors on January 16, 2019, and paid to Vectren stockholders as of the Merger Date. Pursuant to the Merger Agreement and immediately subsequent to the close of the Merger, CenterPoint Energy cash settled $78 million in outstanding share-based awards issued prior to the Merger Date by Vectren to its employees. As a result of the Merger, CenterPoint Energy assumed a liability for these share-based awards of $41 million and recorded an incremental cost of $37 million in Operation and maintenance expenses on its Statements of Consolidated Income during the year ended December 31, 2019 for the accelerated vesting of the awards in accordance with the Merger Agreement. Subsequent to the close of the Merger, CenterPoint Energy recognized severance totaling $61 million to employees terminated immediately subsequent to the Merger close, inclusive of change of control severance payments to executives of Vectren under existing agreements, and which is included in Operation and maintenance expenses on its Statements of Consolidated Income during the year ended December 31, 2019. Total severance cost for the year ended December 31, 2019 was $102 million. Amortization expense related to the operation and maintenance agreements and construction backlog was $24 million in 2019, and is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Statements of Consolidated Income. Amortization expense related to customer relationships and trade names was $16 million in 2019 and is included in Depreciation and amortization expense on CenterPoint Energy’s Statements of Consolidated Income. The results of operations for Vectren included in CenterPoint Energy’s Consolidated Financial Statements from the Merger Date for the year ended December 31, 2019, reflecting results included in both continuing operations and discontinued operations, are as follows: (in millions) Operating revenues $ 2,729 Net income 190 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Registrants expect to be entitled to receive in exchange for these goods or services. The following tables disaggregate revenues by reportable segment and major source and exclude operating revenues from the Energy Services and Infrastructure Services Disposal Groups, which are reflected as discontinued operations prior to the date of closing of each transaction. See Note 4 for further information. CenterPoint Energy Year Ended December 31, 2021 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,726 $ 4,281 $ 249 $ 8,256 Other (1) 37 55 4 96 Total revenues $ 3,763 $ 4,336 $ 253 $ 8,352 Year Ended December 31, 2020 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,451 $ 3,586 $ 313 $ 7,350 Other (1) 19 45 4 68 Total revenues $ 3,470 $ 3,631 $ 317 $ 7,418 Year Ended December 31, 2019 Electric (2) Natural Gas (2) Corporate and Other (2) Total (in millions) Revenue from contracts $ 3,507 $ 3,714 $ 290 $ 7,511 Other (1) 12 36 5 53 Total revenues $ 3,519 $ 3,750 $ 295 $ 7,564 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Total lease income was $7 million for the year ended December 31, 2021 and $6 million for each of the years ended December 31, 2020 and 2019. (2) Reflects revenues from Vectren subsidiaries for the period from February 1, 2019 to December 31, 2019. Houston Electric Year Ended December 31, 2021 2020 2019 (in millions) Revenue from contracts $ 3,117 $ 2,896 $ 2,984 Other (1) 17 15 6 Total revenues $ 3,134 $ 2,911 $ 2,990 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the years ended December 31, 2021, 2020, and 2019. CERC Year Ended December 31, 2021 2020 2019 (in millions) Revenue from contracts $ 3,210 $ 2,714 $ 2,979 Other (1) 38 49 39 Total revenues $ 3,248 $ 2,763 $ 3,018 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was $3 million, $2 million and less than $1 million, respectively, for the years ended December 31, 2021, 2020 and 2019. Revenues from Contracts with Customers Electric (CenterPoint Energy and Houston Electric). Houston Electric distributes electricity to customers over time and customers consume the electricity when delivered. Indiana Electric generates, distributes and transmits electricity to customers over time, and customers consume the electricity when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by state regulators, such as the PUCT and the IURC, is recognized as electricity is delivered and represents amounts both billed and unbilled. Discretionary services requested by customers are provided at a point in time with control transferring upon the completion of the service. Revenue for discretionary services provided by Houston Electric is recognized upon completion of service based on the tariff rates set by the PUCT. Payments for electricity distribution and discretionary services are aggregated and received on a monthly basis. Houston Electric performs transmission services over time as a stand-ready obligation to provide a reliable network of transmission systems. Revenue is recognized upon time elapsed, and the monthly tariff rate set by the regulator. Payments are received on a monthly basis. Indiana Electric customers are billed monthly and payment terms, set by the regulator, require payment within a month of billing. Natural Gas (CenterPoint Energy and CERC). CenterPoint Energy and CERC distribute and transport natural gas to customers over time, and customers consume the natural gas when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by the state governing agency for that service area, is recognized as natural gas is delivered and represents amounts both billed and unbilled. Discretionary services requested by the customer are satisfied at a point in time and revenue is recognized upon completion of service and the tariff rates set by the applicable state regulator. Payments of natural gas distribution, transportation and discretionary services are aggregated and received on a monthly basis. Contract Balances. When the timing of delivery of service is different from the timing of the payments made by customers and when the right to consideration is conditioned on something other than the passage of time, the Registrants recognize either a contract asset (performance precedes billing) or a contract liability (customer payment precedes performance). Those customers that prepay are represented by contract liabilities until the performance obligations are satisfied. The Registrants’ contract assets are included in Accrued unbilled revenues in their Consolidated Balance Sheets. As of December 31, 2021, CenterPoint Energy’s contract assets primarily relate to Energy Systems Group contracts where revenue is recognized using the input method. The Registrants’ contract liabilities are included in Accounts payable and Other current liabilities in their Consolidated Balance Sheets. On an aggregate basis as of December 31, 2021, CenterPoint Energy’s contract liabilities primarily relate to Energy Systems Group contracts where revenue is recognized using the input method. The opening and closing balances of accounts receivable, other accrued unbilled revenue, contract assets and contract liabilities from contracts with customers are as follows: CenterPoint Energy Accounts Receivable Other Accrued Unbilled Revenues Contract Contract Liabilities (in millions) Opening balance as of December 31, 2020 $ 604 $ 505 $ 27 $ 18 Closing balance as of December 31, 2021 627 513 15 16 Increase $ 23 $ 8 $ (12) $ (2) The amount of revenue recognized in the year ended December 31, 2021 that was included in the opening contract liability was $17 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between CenterPoint Energy’s performance and the customer’s payment. Houston Electric Accounts Receivable Other Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2020 $ 225 $ 113 $ 3 Closing balance as of December 31, 2021 225 127 4 Increase (decrease) $ — $ 14 $ 1 The amount of revenue recognized in the year ended December 31, 2021 that was included in the opening contract liability was $3 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between Houston Electric’s performance and the customer’s payment. CERC Accounts Receivable Other Accrued (in millions) Opening balance as of December 31, 2020 $ 214 $ 261 Closing balance as of December 31, 2021 223 247 Increase (decrease) $ 9 $ (14) CERC does not have any opening or closing contract asset or contract liability balances. Remaining Performance Obligations (CenterPoint Energy). The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts and (2) when CenterPoint Energy expects to recognize this revenue. Such contracts include energy performance and sustainable infrastructure services contracts of Energy Systems Group, which are included in Corporate and Other. Rolling 12 Months Thereafter Total (in millions) Revenue expected to be recognized on contracts in place as of December 31, 2021: Corporate and Other $ 232 $ 549 $ 781 $ 232 $ 549 $ 781 Practical Expedients and Exemption. Sales taxes and other similar taxes collected from customers are excluded from the transaction price. For contracts for which revenue from the satisfaction of the performance obligations is recognized in the amount invoiced, the practical expedient was elected and revenue expected to be recognized on these contracts has not been disclosed. Allowance for Credit Losses and Bad Debt Expense CenterPoint Energy and CERC segregate financial assets that fall under the scope of Topic 326, primarily trade receivables due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, among others. Houston Electric had no material changes in its methodology to recognize losses on financial assets that fall under the scope of Topic 326, primarily due to the nature of its customers and regulatory environment. For a discussion of regulatory deferrals related to COVID-19, see Note 7. Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Bad debt expense $ 12 $ — $ 11 $ 24 $ — $ 18 $ 18 $ — $ 14 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (CenterPoint Energy and CERC) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles (CenterPoint Energy and CERC) | Goodwill and Other Intangibles (CenterPoint Energy and CERC) CenterPoint Energy’s goodwill by reportable segment as of December 31, 2020 and changes in the carrying amount of goodwill as of December 31, 2021 are as follows: December 31, 2020 Held for Sale Disposals December 31, (in millions) Electric (1) $ 936 $ — $ — $ 936 Natural Gas 3,323 398 (2) 5 (3) 2,920 Corporate and Other 438 — — 438 Total $ 4,697 $ 398 $ 5 $ 4,294 CERC’s goodwill is as follows: December 31, 2020 Held for Sale Disposals December 31, (in millions) Goodwill $ 757 $ 144 (2) $ 2 (3) $ 611 (1) Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2) Represents goodwill attributable to the Natural Gas businesses. For further information, see Note 4. (3) Represents goodwill attributable to the MES disposal. For further information, see Note 4. When a disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. As a result, goodwill attributable to the Natural Gas businesses to be disposed is classified as held for sale as of December 31, 2021, and goodwill attributable to MES was reflected in the gain on sale during the year ended December 31, 2021. CenterPoint Energy and CERC perform goodwill impairment tests at least annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. The impairment evaluation for goodwill is performed by comparing the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. The estimated fair value of a reporting unit is primarily determined based on an income approach or a weighted combination of income and market approaches. If the carrying amount of the reporting unit is in excess of the estimated fair value of the reporting unit, then the excess amount is the impairment charge that should be recorded, not to exceed the carrying amount of goodwill. See Note 2(g) for further discussion. CenterPoint Energy and CERC performed the annual goodwill impairment tests in the third quarter of each of 2021 and 2020 and determined that no goodwill impairment charge was required for any reporting unit as a result of those tests. In connection with their preparation of the financial statements for the three months ended March 31, 2020, CenterPoint Energy and CERC identified triggering events to perform interim goodwill impairment tests for each of their reporting units due to the macroeconomic conditions related in part to the COVID-19 pandemic and the resulting decrease in CenterPoint Energy’s enterprise market capitalization below book value from the decline in CenterPoint Energy’s Common Stock price. CenterPoint Energy’s interim impairment test in the three months ended March 31, 2020 resulted in a non-cash goodwill impairment charge in the amount of $185 million for a reporting unit, Indiana Electric, within the Electric reportable segment. The fair value analysis resulted in an implied fair value of goodwill of $936 million for this reporting unit as of March 31, 2020, and as a result, the non-cash impairment charge was recorded in the year ended December 31, 2020. CenterPoint Energy estimated the fair value of the Indiana Electric reporting unit using primarily an income approach. Under the income approach, the fair value of the reporting unit is determined by using the present value of future expected cash flows, which include management’s projections of the amount and timing of future capital expenditures and the cash inflows from the related regulatory recovery. These estimated future cash flows are then discounted using a rate that approximates the weighted average cost of capital of a market participant. The selection of the discount rate requires significant judgment. With the exception of Indiana Electric reporting unit discussed above, the fair value of each of CenterPoint Energy’s and CERC’s reporting units exceeded their carrying value, resulting in no goodwill impairment from the March 31, 2020 interim impairment test. See Note 4 for goodwill impairments included within discontinued operations. The tables below present information on CenterPoint Energy’s other intangible assets recorded in Other in Other Assets on the Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Statements of Consolidated Income, unless otherwise indicated in the tables below. December 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance (in millions) Customer relationships $ 33 $ (12) $ 21 $ 33 $ (8) $ 25 Trade names 16 (5) 11 16 (3) 13 Construction backlog (1) — — — 5 (5) — Operation and maintenance agreements (1) 12 (1) 11 12 (1) 11 Other 2 (1) 1 2 (1) 1 Total $ 63 $ (19) $ 44 $ 68 $ (18) $ 50 (1) Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Statements of Consolidated Income. Year Ended December 31, 2021 2020 2019 (in millions) Amortization expense of intangible assets recorded in Depreciation and amortization (1) (2) $ 6 $ 6 $ 5 Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (2) 1 2 4 (1) Includes $5 million for the year ended December 31, 2019 of amortization expense related to intangibles acquired in the Merger. (2) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 4. CenterPoint Energy estimates that amortization expense of intangible assets with finite lives for the next five years will be as follows: Amortization Expense (in millions) 2022 $ 6 2023 6 2024 5 2025 5 2026 5 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters The following is a list of regulatory assets and liabilities, excluding amounts related to the Arkansas and Oklahoma Natural Gas businesses classified as held for sale, reflected on the Registrants’ respective Consolidated Balance Sheets as of December 31, 2021 and 2020. For information about regulatory assets and liabilities in held for sale, see Note 4. December 31, 2021 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 412 $ — $ 5 Asset retirement obligations & other 240 45 192 Net deferred income taxes 41 29 2 Total future amounts recoverable from ratepayers 693 74 199 Amounts deferred for future recovery related to: Extraordinary gas costs 1,528 — 1,454 Cost recovery riders 124 — — Hurricane and February 2021 Winter Storm Event restoration costs 105 105 — Other regulatory assets 94 57 37 Gas recovery costs 29 — 29 Decoupling 25 — 25 COVID-19 incremental costs 23 8 15 Emergency generation costs 21 21 — Unrecognized equity return (28) (3) (4) Total amounts deferred for future recovery 1,921 188 1,556 Amounts currently recovered in customer rates related to: Authorized trackers and cost deferrals 504 24 11 Securitized regulatory assets 420 420 — Unamortized loss on reacquired debt and hedging 92 67 — Gas recovery costs 72 — 40 Extraordinary gas costs 66 — 66 Regulatory assets related to TCJA 48 46 2 Hurricane Harvey restoration costs 43 43 — Benefit obligations 28 24 4 Unrecognized equity return (2) (171) (97) (12) Total amounts recovered in customer rates (3) 1,102 527 111 Total Regulatory Assets $ 3,716 $ 789 $ 1,866 Total Current Regulatory Assets (4) $ 1,395 $ — $ 1,289 Total Non-Current Regulatory Assets $ 2,321 $ 789 $ 577 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,389 $ 738 $ 400 Estimated removal costs 1,304 229 452 Other regulatory liabilities 481 205 128 Total Regulatory Liabilities $ 3,174 $ 1,172 $ 980 Total Current Regulatory Liabilities (5) $ 21 $ 20 $ 1 Total Non-Current Regulatory Liabilities $ 3,153 $ 1,152 $ 979 December 31, 2020 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 550 $ — $ 4 Asset retirement obligations & other 173 39 125 Net deferred income taxes 37 25 3 Total future amounts recoverable from ratepayers 760 64 132 Amounts deferred for future recovery related to: Cost recovery riders 221 — — Other regulatory assets 90 38 52 Hurricane restoration costs 36 36 — COVID-19 incremental costs 23 5 18 Gas recovery costs 9 — 9 Decoupling 2 — 2 Unrecognized equity return (42) — (5) Total amounts deferred for future recovery 339 79 76 Amounts currently recovered in customer rates related to: Securitized regulatory assets 633 633 — Authorized trackers and cost deferrals 332 30 20 Unamortized loss on reacquired debt and hedging 111 73 — Hurricane Harvey restoration costs 55 55 — Benefit obligations 37 31 6 Regulatory assets related to TCJA 25 20 5 Gas recovery costs 7 — 7 Unrecognized equity return (2) (187) (137) (8) Total amounts recovered in customer rates 1,013 705 30 Total Regulatory Assets $ 2,112 $ 848 $ 238 Total Current Regulatory Assets $ 18 $ — $ 18 Total Non-Current Regulatory Assets $ 2,094 $ 848 $ 220 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,484 $ 764 $ 421 Estimated removal costs 1,470 231 656 Other regulatory liabilities 566 300 178 Total Regulatory Liabilities $ 3,520 $ 1,295 $ 1,255 Total Current Regulatory Liabilities (5) $ 72 $ 43 $ 29 Total Non-Current Regulatory Liabilities $ 3,448 $ 1,252 $ 1,226 (1) Pension and postretirement-related regulatory assets balances are measured annually, and the ending amortization period may change based on the actuarial valuation. (2) Represents the following: (a) CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana; (b) Houston Electric’s allowed equity return on its true-up balance of stranded costs, other changes and related interest resulting from the formerly integrated electric utilities prior to Texas deregulation to be recovered in rates through 2024 and certain storm restoration balances pending recovery in the next rate proceeding; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas. (3) Of the $1.1 billion, $527 million and $111 million currently being recovered in customer rates related to CenterPoint Energy, Houston Electric and CERC, respectively, $558 million, $459 million and $7 million is earning a return, respectively. The weighted average recovery period of regulatory assets currently being recovered in base rates, not earning a return, which totals $175 million, $67 million and $69 million for CenterPoint Energy, Houston Electric and CERC, respectively, is 11 years, 23 years and 2 years, respectively. Regulatory assets not earning a return with perpetual or undeterminable lives have been excluded from the weighted average recovery period calculation. (4) Current regulatory assets for CenterPoint Energy and CERC include extraordinary gas costs of $1,256 million and $1,182 million, respectively. (5) Current regulatory liabilities are included in Other current liabilities in each of the Registrants’ respective Consolidated Balance Sheets. The table below reflects the amount of allowed equity return recognized by each Registrant in its Statements of Consolidated Income: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 40 $ 37 $ 1 $ 31 $ 31 $ — $ 45 $ 45 $ — February 2021 Winter Storm Event In February 2021, certain of the Registrants’ jurisdictions experienced an extreme and unprecedented winter weather event that resulted in prolonged freezing temperatures, which impacted their businesses. In Texas, the February 2021 Winter Storm Event caused an electricity generation shortage that was severely disruptive to Houston Electric’s service territory and the wholesale generation market. While demand for electricity reached extraordinary levels due to the extreme cold, the supply of electricity significantly decreased in part because of the inability of certain power generation facilities to supply electric power to the grid. Houston Electric does not own or operate any electric generation facilities other than leasing facilities that provide temporary emergency electric energy to aid in restoring power to distribution customers during certain widespread power outages as allowed by a new law enacted after the February 2021 Winter Storm Event. Houston Electric transmits and distributes to customers of REPs electric power that the REPs obtain from power generation facilities owned by third parties. ERCOT serves as the independent system operator and regional reliability coordinator for member electric power systems in most of Texas. To comply with ERCOT’s orders, Houston Electric implemented controlled outages across its service territory, resulting in a substantial number of businesses and residents being without power, many for extended periods of time, in compliance with ERCOT’s directives as an emergency procedure to avoid prolonged large-scale state-wide blackouts and long-term damage to the electric system in Texas. In anticipation of this weather event, Houston Electric implemented its emergency operations plan’s processes and procedures necessary to respond to such events, including establishing an incident command center and calling for mutual assistance from other utilities where needed, among other measures. Throughout the February 2021 Winter Storm Event, Houston Electric remained in contact with its regulators and stakeholders, including federal, state and local officials, as well as the PUCT and ERCOT. The February 2021 Winter Storm Event also impacted wholesale prices of CenterPoint Energy’s and CERC’s natural gas purchases and their ability to serve customers in their Natural Gas service territories, including due to the reduction in available natural gas capacity and impacts to CenterPoint Energy’s and CERC’s natural gas supply portfolio activities, and the effects of weather on their systems and their ability to transport natural gas, among other things. The overall natural gas market, including the markets from which CenterPoint Energy and CERC sourced a significant portion of their natural gas for their operations, experienced significant impacts caused by the February 2021 Winter Storm Event, resulting in extraordinary increases in the price of natural gas purchased by CenterPoint Energy and CERC. On February 13, 2021, the Railroad Commission authorized each Texas natural gas distribution utility to record in a regulatory asset the extraordinary expenses associated with the February 2021 Winter Storm Event, including, but not limited to, natural gas cost and other costs related to the procurement and transportation of natural gas supply, subject to recovery in future regulatory proceedings. The Texas governor signed legislation in June 2021 that authorizes the Railroad Commission to use securitization financing and the issuance of customer rate relief bonds for recovery of extraordinary natural gas costs incurred by natural gas utilities as a result of the February 2021 Winter Storm Event. On November 12, 2021, the RRC issued a Regulatory Asset Determination Order which authorized CERC to include $1.1 billion in a regulatory asset which should be included for recovery through customer rate relief bond financing. In addition, CenterPoint Energy’s and CERC’s Natural Gas utilities in jurisdictions outside of Texas deferred under-recovered natural gas cost as regulatory assets under existing recovery mechanisms and are seeking recovery of the increased cost of natural gas. As of December 31, 2021, CenterPoint Energy and CERC have recorded current regulatory assets of $1,410 million and $1,336 million, respectively, of which $154 million related to Arkansas and Oklahoma has been recast to held for sale at both CenterPoint Energy and CERC, and non-current regulatory assets of $583 million and $583 million respectively, of which $244 million related to Arkansas and Oklahoma has been recast to held for sale at both CenterPoint Energy and CERC, associated with the February 2021 Winter Storm Event. See Note 4 for further information. Amounts for the under recovery of natural gas costs are reflected in regulatory assets included in Prepaid expenses and other current assets and Regulatory assets on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets. Recovery of natural gas costs within the regulatory assets are probable and are subject to customary regulatory prudence reviews in all jurisdictions that may impact the amounts ultimately recovered. CenterPoint Energy and CERC, as applicable, have begun recovery of natural gas costs in Indiana, Louisiana, Mississippi and Minnesota. CenterPoint Energy and CERC have filed for securitization of natural gas costs in Texas, received commission approval and issuance of financing order in 2022, and expect the Texas Public Financing Authority to issue customer rate relief bonds in 2022. As part of the closing of the sale of CenterPoint Energy’s and CERC’s Natural Gas businesses in Arkansas and Oklahoma, CERC received as part of the purchase price $398 million for unrecovered natural gas costs of the February 2021 Winter Storm Event. In testimonies filed on December 22, 2021 and February 11, 2022, in CERC’s high gas cost prudency review case, the Minnesota Attorney General’s Office, Department of Commerce, and Citizens Utility Board have proposed significant disallowances for all natural gas utilities, resulting in a potential disallowances for CenterPoint Energy and CERC. Recommended disallowances for CERC include up to $45 million proposed by the Department of Commerce, $82 million proposed by the Citizens Utility Board, and $409 million (or in the alternative $57 million) proposed by the Attorney General’s Office. The natural gas costs in Minnesota were incurred in accordance with the plan on file with the MPUC and CenterPoint Energy believes the costs were prudently incurred and are eligible for recovery through an existing mechanism. The MPUC has ordered that the amortization period for extraordinary gas costs resulting from the February 2021 Winter Storm Event be increased from a 27-months to 63-months beginning on January 1, 2022, and that CERC forego recovery of the associated carrying costs. Additionally, due to the uncertainty of timing and method of recovery in some jurisdictions, CenterPoint Energy and CERC may not earn a return on amounts deferred in the regulatory assets associated with the February 2021 Winter Storm Event. On February 21, 2021, in response to the 2021 February Winter Storm Event, the PUCT issued an order prohibiting REPs from sending a request to TDUs to disconnect such REPs’ customers for non-payment, effective February 21, 2021. As a result of this order, Houston Electric did not execute any requests for disconnection from any REPs until the PUCT issued orders for disconnects to resume. In June 2021, the PUCT issued an updated order relating to disconnections and REPs resumed the distribution of disconnection notices thereafter. As of December 31, 2021, as authorized by the PUCT, CenterPoint Energy and Houston Electric recorded a regulatory asset of $8 million for bad debt expenses resulting from REPs’ default on their obligation to pay delivery charges to Houston Electric net of collateral. Additionally, as of December 31, 2021, CenterPoint Energy and Houston Electric recorded a regulatory asset of $15 million to defer operations and maintenance costs associated with the February 2021 Winter Storm Event. See Notes 14 and 16(e) for further information regarding debt financing transactions and litigation related to the February 2021 Winter Storm Event, respectively. COVID-19 Regulatory Matters Governors, public utility commissions and other authorities in the states in which the Registrants operate have issued a number of different orders related to the COVID-19 pandemic, including orders addressing customer non-payment and disconnection. Although the disconnect moratoriums have expired in the Registrants’ service territories, CenterPoint Energy continues to support those customers who may need payment assistance, arrangements or extensions. On March 26, 2020, the PUCT issued two orders related to COVID-19 issues that affect Houston Electric. First, the PUCT issued an order related to accrual of regulatory assets granting authority for utilities to record as a regulatory asset expenses resulting from the effects of COVID-19. In the order, the PUCT noted that it will consider whether a utility’s request for recovery of the regulatory asset is reasonable and necessary in a future proceeding. Second, the PUCT issued an order related to the COVID-19 ERP, as modified, which, in light of the disaster declarations issued by the governor of Texas, authorized a customer assistance program for certain residential customers of electric service in areas of Texas open to customer choice, which includes Houston Electric’s service territory. The PUCT issued an order on August 27, 2020 to conclude the COVID-19 ERP. The PUCT determined that enrollment in the COVID-19 ERP would end on August 31, 2020 and benefits under the program ended on September 30, 2020. Final claims for reimbursement were required to be submitted to the transmission and distribution utilities by November 30, 2020. The transmission and distribution utilities must file a tariff rider cancellation seven days before the date on which it is estimated that revenues from the COVID-19 ERP are approximately equal to its program expenses. Final program reports were required to be submitted to the PUCT by January 15, 2021. The COVID-19 ERP allows for any over/under collection of program expenses to be recorded as a regulatory asset or liability. In December 2021, Houston Electric filed with the PUCT a proposal to reduce the TCRF revenue requirement by the final amount of COVID-19 ERP regulatory liability balance. On January 25, 2022, the PUCT issued approval of the TCRF update with rates effective March 1, 2022. The COVID-19 ERP allows program expenses to be recovered in rates. CenterPoint Energy’s and Houston Electric’s COVID-19 ERP regulatory assets were $-0- million as of December 31, 2021 and $6 million as of December 31, 2020. Commissions in all of Indiana Electric’s and CenterPoint Energy’s and CERC’s Natural Gas service territories have either (1) issued orders to record a regulatory asset for incremental bad debt expenses related to COVID-19, including costs associated with the suspension of disconnections and payment plans or (2) provided authority to recover bad debt expense through an existing tracking mechanism. CenterPoint Energy and CERC have recorded estimated incremental uncollectible receivables to the associated regulatory asset of $29 million and $27 million, respectively, as of December 31, 2021 and $22 million and $19 million, respectively, as of December 31, 2020. In some of the states in which the Registrants operate, public utility commissions have authorized utilities to employ deferred accounting authority for certain COVID-19 related costs which ensure the safety and health of customers, employees, and contractors, that would not have been incurred in the normal course of business. CERC’s Natural Gas service territory in Minnesota will include any offsetting savings in the deferral. Other jurisdictions where the Registrants operate may require them to offset the deferral with savings as well. The Mississippi RRA, filed on April 30, 2021, included the unamortized balance of the regulatory asset as of December 31, 2020 in rate base per Docket No. 2018-AD-141 Order Authorizing Utility Response and Accounting for COVID-19. The Minnesota general rate case filing, filed on November 1, 2021, included a request to recover the COVID-19 regulatory asset balance as of June 30, 2021 over a two-year amortization period. |
Stock-Based Incentive Compensat
Stock-Based Incentive Compensation Plans and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Stock-Based Incentive Compensation Plans and Employee Benefit Plans [Abstract] | |
Stock-Based Incentive Compensation Plans and Employee Benefit Plans | Stock-Based Incentive Compensation Plans and Employee Benefit Plans (a) Stock-Based Incentive Compensation Plans (CenterPoint Energy) CenterPoint Energy has LTIPs that provide for the issuance of stock-based incentives, including stock options, performance awards, restricted stock unit awards and restricted and unrestricted stock awards to officers, employees and non-employee directors. Approximately 14 million shares of Common Stock are authorized under these plans for awards. CenterPoint Energy issues new shares of its Common Stock to satisfy stock-based payments related to LTIPs. Equity awards are granted to employees without cost to the participants. Compensation costs for the performance and stock unit awards granted under LTIPs are measured using fair value and expected achievement levels on the grant date. For performance awards with operational goals, the achievement levels are revised as goals are evaluated. The fair value of awards granted to employees is based on the closing stock price of CenterPoint Energy’s Common Stock on the grant date. The compensation expense is recorded on a straight-line basis over the vesting period. Forfeitures are estimated on the date of grant based on historical averages and estimates are updated periodically throughout the vesting period. The performance awards granted in 2021, 2020 and 2019 are distributed based upon the achievement of certain objectives over a three-year performance cycle. The stock unit awards granted in 2020 and 2019 are service based, and the stock unit awards granted in 2021 are service based, subject to the achievement of a performance goal. The stock unit awards generally vest at the end of a three-year period, provided, however, that stock unit awards granted to non-employee directors vested immediately upon grant. Upon vesting, shares under the performance and stock unit awards are issued to the participants along with the value of dividend equivalents earned over the performance cycle or vesting period. The following table summarizes CenterPoint Energy’s expenses related to LTIPs for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions) LTIP compensation expense (1) $ 48 $ 38 $ 28 Income tax benefit recognized 11 9 7 Actual tax benefit realized for tax deductions 4 5 12 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income and shown prior to any amounts capitalized. The following tables summarize CenterPoint Energy’s LTIP activity for 2021: Year Ended December 31, 2021 Shares Weighted-Average Remaining Average Aggregate Intrinsic Value (2) (Millions) Performance Awards (1) Outstanding and nonvested as of December 31, 2020 3,900 $ 26.58 Granted 2,095 21.89 Forfeited or canceled (1,017) 26.44 Vested and released to participants (315) 26.79 Outstanding and nonvested as of December 31, 2021 4,663 $ 24.48 1.2 $ 90 Stock Unit Awards Outstanding and nonvested as of December 31, 2020 1,289 $ 25.71 Granted 1,609 24.20 Forfeited or canceled (91) 26.23 Vested and released to participants (440) 25.26 Outstanding and nonvested as of December 31, 2021 2,367 $ 24.75 1.4 $ 66 (1) Reflects maximum performance achievement. (2) Reflects the impact of current expectations of achievement and stock price. The weighted average grant date fair values per unit of awards granted were as follows for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions, except for per unit amounts) Performance Awards Weighted-average grant date fair value per unit of awards granted $ 21.89 $ 23.82 $ 31.16 Total intrinsic value of awards received by participants 7 9 36 Vested grant date fair value 8 9 20 Stock Unit Awards Weighted-average grant date fair value per unit of awards granted $ 24.20 $ 21.53 $ 31.07 Total intrinsic value of awards received by participants 11 12 15 Vested grant date fair value 11 12 9 As of December 31, 2021, there was $58 million of total unrecognized compensation cost related to nonvested performance and stock unit awards which is expected to be recognized over a weighted-average period of 1.7 years. (b) Pension Benefits (CenterPoint Energy) CenterPoint Energy maintains a non-contributory qualified defined benefit pension plan covering eligible employees, with benefits determined using a cash balance formula. In addition to the non-contributory qualified defined benefit pension plan, CenterPoint Energy maintains unfunded non-qualified benefit restoration plans which allow participants to receive the benefits to which they would have been entitled under CenterPoint Energy’s non-contributory qualified pension plan except for federally mandated limits on qualified plan benefits or on the level of compensation on which qualified plan benefits may be calculated. As a result of the Merger, CenterPoint Energy now also maintains three additional qualified defined benefit pension plans, two of which are closed to new participants and one of which is completely frozen, and a non-qualified supplemental retirement plan. The defined benefit pension plans cover eligible full-time regular employees and retirees of Vectren and are primarily non-contributory. CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the non-qualified benefit plans: Year Ended December 31, 2021 2020 2019 (in millions) Service cost (1) $ 39 $ 43 $ 40 Interest cost (2) 59 75 96 Expected return on plan assets (2) (103) (112) (105) Amortization of prior service cost (2) — — 9 Amortization of net loss (2) 36 41 52 Settlement cost (2) (3) 38 2 2 Curtailment gain (2) (4) — — (1) Net periodic cost $ 69 $ 49 $ 93 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. (3) A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In 2021, 2020 and 2019, CenterPoint Energy recognized non-cash settlement cost due to lump sum settlement payments. (4) A curtailment gain or loss is required when the expected future services of a significant number of employees are reduced or eliminated for the accrual of benefits. In 2019, CenterPoint Energy recognized a pension curtailment gain related to employees who were terminated after the Merger Date. CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension benefits: Year Ended December 31, 2021 2020 2019 Discount rate 2.45 % 3.20 % 4.35 % Expected return on plan assets 5.00 5.75 6.00 Rate of increase in compensation levels 5.05 4.95 4.60 In determining net periodic benefit cost, CenterPoint Energy uses fair value, as of the beginning of the year, as its basis for determining expected return on plan assets. The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in the Consolidated Balance Sheets as well as the key assumptions of CenterPoint Energy’s pension plans. The measurement dates for plan assets and obligations were December 31, 2021 and 2020. December 31, 2021 2020 (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 2,507 $ 2,453 Service cost 38 43 Interest cost 59 75 Benefits paid (285) (207) Actuarial (gain) loss (1) (22) 143 Plan amendment 1 — Benefit obligation, end of year 2,298 2,507 Change in Plan Assets Fair value of plan assets, beginning of year 2,135 2,005 Employer contributions 61 86 Benefits paid (285) (207) Actual investment return 161 251 Fair value of plan assets, end of year 2,072 2,135 Funded status, end of year $ (226) $ (372) Amounts Recognized in Balance Sheets Non-current assets $ 6 $ — Current liabilities-other (7) (8) Other liabilities-benefit obligations (225) (364) Net liability, end of year $ (226) $ (372) Actuarial Assumptions Discount rate (2) 2.80 % 2.45 % Expected return on plan assets (3) 5.00 5.00 Rate of increase in compensation levels 4.95 5.05 Interest crediting rate 2.25 2.25 (1) Significant sources of gain for 2021 include the increase in discount rate from 2.45% to 2.80%, and actual return on plan assets exceeding expected return on assets during 2021. (2) The discount rate assumption was determined by matching the projected cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3) The expected rate of return assumption was developed using the targeted asset allocation of CenterPoint Energy’s plans and the expected return for each asset class. The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets: December 31, 2021 2020 Pension Pension Pension Pension (in millions) Accumulated benefit obligation $ 2,216 $ 62 $ 2,427 $ 68 Projected benefit obligation 2,237 62 2,440 68 Fair value of plan assets 2,072 — 2,135 — The accumulated benefit obligation for all defined benefit pension plans on CenterPoint Energy’s Consolidated Balance Sheets was $2,278 million and $2,495 million as of December 31, 2021 and 2020, respectively. (c) Postretirement Benefits CenterPoint Energy provides certain healthcare and life insurance benefits for eligible retired employees on both a contributory and non-contributory basis. The Registrants’ employees (other than employees of Vectren and its subsidiaries) who were hired before January 1, 2018 and who have met certain age and service requirements at retirement, as defined in the plans, are eligible to participate in these benefit plans, provided, however, that life insurance benefits are available only for eligible retired employees who retired before January 1, 2022. Employees hired on or after January 1, 2018 are not eligible for these benefits, except that such employees represented by IBEW Local Union 66 are eligible to participate in certain of the benefits, subject to the applicable age and service requirements. With respect to retiree medical and prescription drug benefits, and, effective January 1, 2021, dental and vision benefits, employees represented by the IBEW Local Union 66 who retire on or after January 1, 2017, and their dependents, receive any such benefits exclusively through the NECA/IBEW Family Medical Care Plan pursuant to the terms of the applicable collective bargaining agreement. Houston Electric and CERC are required to fund a portion of their obligations in accordance with rate orders. All other obligations are funded on a pay-as-you-go basis. CenterPoint Energy, through Vectren, also maintains a postretirement benefit plan that provides health care and life insurance benefits, which are a combination of self-insured and fully insured programs, to eligible Vectren retirees on both a contributory and non-contributory basis. Postretirement benefits are accrued over the active service period of employees. The net postretirement benefit cost includes the following components: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 2 $ — $ 1 $ 2 $ — $ 1 $ 3 $ 1 $ 1 Interest cost (2) 9 4 3 11 5 3 15 7 5 Expected return on plan assets (2) (4) (3) (1) (5) (4) (1) (5) (4) (1) Amortization of prior service cost (credit) (2) (4) (5) 1 (4) (5) 1 (5) (6) 1 Net postretirement benefit cost (credit) $ 3 $ (4) $ 4 $ 4 $ (4) $ 4 $ 8 $ (2) $ 6 (1) Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals. The following assumptions were used to determine net periodic cost relating to postretirement benefits: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Discount rate 2.50 % 2.50 % 2.50 % 3.25 % 3.25 % 3.25 % 3.20 % 3.20 % 3.20 % Expected return on plan assets 3.20 3.30 2.85 3.95 4.05 3.35 4.60 4.70 4.15 The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in consolidated balance sheets and the key assumptions of the postretirement plans. The measurement dates for plan assets and benefit obligations were December 31, 2021 and 2020. December 31, 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 366 $ 168 $ 105 $ 356 $ 162 $ 102 Service cost 2 — 1 2 — 1 Interest cost 9 4 3 11 5 3 Participant contributions 7 2 2 6 2 2 Benefits paid (21) (9) (6) (22) (10) (6) Early Retiree Reinsurance Program 20 — 11 — — — Plan amendment — 5 — — — — Actuarial (gain) loss (1) (47) (22) (11) 13 9 3 Benefit obligation, end of year 336 148 105 366 168 105 Change in Plan Assets Fair value of plan assets, beginning of year 134 106 28 128 101 27 Employer contributions 7 1 3 10 3 3 Participant contributions 7 2 2 6 2 2 Benefits paid (21) (9) (6) (22) (10) (6) Actual investment return 5 4 1 12 10 2 Fair value of plan assets, end of year 132 104 28 134 106 28 Funded status, end of year $ (204) $ (44) $ (77) $ (232) $ (62) $ (77) Amounts Recognized in Balance Sheets Current liabilities — other $ (7) $ — $ (3) $ (9) $ — $ (3) Other liabilities — benefit obligations (197) (44) (73) (223) (62) (74) Net liability, end of year $ (204) $ (44) $ (76) $ (232) $ (62) $ (77) Actuarial Assumptions Discount rate (2) 2.85 % 2.85 % 2.85 % 2.50 % 2.50 % 2.50 % Expected return on plan assets (3) 3.22 3.32 2.86 3.20 3.30 2.85 Medical cost trend rate assumed for the next year - Pre-65 6.00 6.00 6.00 5.25 5.25 5.25 Medical/prescription drug cost trend rate assumed for the next year - Post-65 18.71 18.71 18.71 19.70 19.70 19.70 Prescription drug cost trend rate assumed for the next year - Pre-65 8.00 8.00 8.00 7.50 7.50 7.50 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 4.50 4.50 4.50 4.50 4.50 Year that the cost trend rates reach the ultimate trend rate - Pre-65 2029 2029 2029 2028 2028 2028 Year that the cost trend rates reach the ultimate trend rate - Post-65 2030 2030 2030 2029 2029 2029 (1) Significant sources of gain for 2021 include updated claims and demographic experience and the increase in discount rate from 2.50% to 2.85%. (2) The discount rate assumption was determined by matching the projected cash flows of the plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3) The expected rate of return assumption was developed using the targeted asset allocation of the plans and the expected return for each asset class. (d) Accumulated Other Comprehensive Income (Loss) (CenterPoint Energy and CERC) CenterPoint Energy recognizes the funded status of its pension and other postretirement plans on its Consolidated Balance Sheets. To the extent this obligation exceeds amounts previously recognized in the Statements of Consolidated Income, CenterPoint Energy records a regulatory asset for that portion related to its rate regulated utilities. To the extent that excess liability does not relate to a rate regulated utility, the offset is recorded as a reduction to equity in accumulated other comprehensive income. Amounts recognized in accumulated other comprehensive loss (gain) consist of the following: December 31, 2021 2020 Pension Postretirement Pension Postretirement CenterPoint Energy CenterPoint Energy CERC CenterPoint Energy CenterPoint Energy CERC (in millions) Unrecognized actuarial loss (gain) $ 99 $ (23) $ (18) $ 109 $ (14) $ (12) Unrecognized prior service cost — 13 12 — 7 7 Net amount recognized in accumulated other comprehensive loss (gain) $ 99 $ (10) $ (6) $ 109 $ (7) $ (5) The changes in plan assets and benefit obligations recognized in other comprehensive income during 2021 are as follows: Pension Postretirement CenterPoint Energy CenterPoint Energy CERC (in millions) Net loss (gain) $ 1 $ (2) $ — Amortization of net loss (7) — — Amortization of prior service cost — (1) (1) Settlement (4) — — Total recognized in comprehensive income $ (10) $ (3) $ (1) Total recognized in net periodic costs and Other comprehensive income $ 59 $ — $ 3 (e) Pension Plan Assets (CenterPoint Energy) In managing the investments associated with the benefit plans, CenterPoint Energy’s objective is to achieve and maintain a fully funded plan. This objective is expected to be achieved through an investment strategy that manages liquidity requirements while maintaining a long-term horizon in making investment decisions and efficient and effective management of plan assets. As part of the investment strategy discussed above, CenterPoint Energy maintained the following weighted average allocation targets for its pension plans as of December 31, 2021: Minimum Maximum U.S. equity 17 % 27 % International equity 9 % 19 % Real estate 2 % 8 % Fixed income 54 % 64 % Cash — % 2 % The following tables set forth by level, within the fair value hierarchy (see Note 10), CenterPoint Energy’s pension plan assets at fair value as of December 31, 2021 and 2020: Fair Value Measurements as of December 31, 2021 2020 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) Cash $ 26 $ — $ — $ 26 $ 29 $ — $ — $ 29 Corporate bonds: Investment grade or above — 833 — 833 — 767 — 767 Equity securities: U.S. companies 89 — — 89 76 — — 76 Cash received as collateral from securities lending 80 — — 80 81 — — 81 U.S. treasuries and government agencies 285 — — 285 225 — — 225 Mortgage backed securities — 7 — 7 — 5 — 5 Asset backed securities — 3 — 3 — 3 — 3 Municipal bonds — 40 — 40 — 43 — 43 Mutual funds (2) — — — — 301 — — 301 International government bonds — 20 — 20 — 18 — 18 Obligation to return cash received as collateral from securities lending (80) — — (80) (81) — — (81) Total investments at fair value $ 400 $ 903 $ — $ 1,303 $ 631 $ 836 $ — $ 1,467 Investments measured by net asset value per share or its equivalent (1) (2) 769 668 Total Investments $ 2,072 $ 2,135 (1) Represents investments in common collective trust funds. (2) The amounts invested in mutual funds and common collective trust funds were allocated as follows: As of December 31, 2021 2020 Common Collective Trust Funds Mutual Funds Common Collective Trust Funds International equities 41 % 14 % 37 % U.S. equities 58 % 55 % 3 % Real estate — % 5 % 1 % Fixed income 1 % 27 % 59 % Level 2 investments, which do not have a quoted price in active market, are valued using the market data provided by independent pricing services or major market makers, to arrive at a price a dealer would pay for the security. The pension plans utilized both exchange traded and over-the-counter financial instruments such as futures, interest rate options and swaps that were marked to market daily with the gains/losses settled in the cash accounts. The pension plans did not include any holdings of CenterPoint Energy Common Stock as of December 31, 2021 or 2020. (f) Postretirement Plan Assets In managing the investments associated with the postretirement plans, the Registrants’ primary objective is to preserve and improve the funded status of the plan, while minimizing volatility. This objective is expected to be achieved through an investment strategy that manages liquidity requirements while maintaining a long-term horizon in making investment decisions and efficient and effective management of plan assets. As part of the investment strategy discussed above, the Registrants maintained the following weighted average allocation targets for the postretirement plans as of December 31, 2021: CenterPoint Energy Houston Electric CERC Minimum Maximum Minimum Maximum Minimum Maximum U.S. equities 13 % 23 % 13 % 23 % 15 % 25 % International equities 3 % 13 % 3 % 13 % 2 % 12 % Fixed income 69 % 79 % 69 % 79 % 68 % 78 % Cash — % 2 % — % 2 % — % 2 % The following table presents mutual funds by level, within the fair value hierarchy, the Registrants’ postretirement plan assets at fair value as of December 31, 2021 and 2020: Fair Value Measurements as of December 31, 2021 2020 Mutual Funds (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) CenterPoint Energy $ 133 $ — $ — $ 133 $ 134 $ — $ — $ 134 Houston Electric 105 — — 105 106 — — 106 CERC 28 — — 28 28 — — 28 The amounts invested in mutual funds were allocated as follows: As of December 31, 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Fixed income 72 % 73 % 71 % 74 % 74 % 72 % U.S. equities 20 % 19 % 22 % 19 % 18 % 21 % International equities 8 % 8 % 7 % 7 % 8 % 7 % (g) Benefit Plan Contributions The Registrants made the following contributions in 2021 and expect to make the following minimum contributions in 2022 to the indicated benefit plans below: Contributions in 2021 Expected Minimum Contributions in 2022 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Qualified pension plans $ 53 $ — $ — $ — $ — $ — Non-qualified pension plans 8 — — 7 — — Postretirement benefit plans 7 1 3 8 1 3 The following benefit payments are expected to be paid by the pension and postretirement benefit plans: Pension Postretirement Benefits CenterPoint CenterPoint Houston Electric CERC (in millions) 2022 $ 166 $ 16 $ 7 $ 4 2023 168 17 8 5 2024 167 18 9 5 2025 167 19 9 5 2026 163 20 9 6 2027-2031 730 103 48 30 (h) Savings Plan CenterPoint Energy maintains the CenterPoint Energy Savings Plan, a tax-qualified employee savings plan that includes a cash or deferred arrangement under Section 401(k) of the Code, and an employee stock ownership plan under Section 4975(e)(7) of the Code. Under the plan, participating employees may make pre-tax or Roth contributions and, if eligible, after-tax contributions up to certain federally mandated limits. Participating Registrants provide matching contributions and, as of January 1, 2020, for certain eligible employees, nonelective contributions up to certain limits. CenterPoint Energy, through the Merger, also acquired additional defined contribution retirement savings plans sponsored by Vectren and its subsidiaries that are qualified under sections 401(a) and 401(k) of the Code, one of which merged into the CenterPoint Energy Savings Plan as of January 1, 2020 and one of which merged into the CenterPoint Energy Savings Plan as of January 1, 2022. As of January 1, 2022, the CenterPoint Energy Savings Plan is the only remaining qualified defined contribution retirement savings plan maintained by CenterPoint Energy. The CenterPoint Energy Savings Plan has significant holdings of Common Stock. As of December 31, 2021, 8,688,841 shares of Common Stock were held by the savings plan, which represented approximately 8% of its investments. Given the concentration of the investments in Common Stock, the savings plan and its participants have market risk related to this investment. The savings plan limits the percentage of future contributions that can be invested in Common Stock to 25% and prohibits transfers of account balances where the transfer would result in more than 25% of a participant’s total account balance invested in Common Stock. CenterPoint Energy allocates the savings plan benefit expense to Houston Electric and CERC related to their respective employees. The following table summarizes the Registrants’ savings plan benefit expense for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Savings plan benefit expenses (1) $ 58 $ 20 $ 18 $ 58 $ 18 $ 19 $ 58 $ 18 $ 18 (1) Amounts presented in the table above are included in Operation and maintenance expense in the Registrants’ respective Statements of Consolidated Income and shown prior to any amounts capitalized. (i) Other Benefits Plans The Registrants participate in CenterPoint Energy’s plans that provide postemployment benefits for certain former or inactive employees, their beneficiaries and covered dependents, after employment but before retirement (primarily healthcare and life insurance benefits for participants in the long-term disability plan). CenterPoint Energy maintains non-qualified deferred compensation plans, including plans acquired in the Merger, that provide benefits payable to eligible directors, officers and select employees or their designated beneficiaries at specified future dates or upon termination, retirement or death. Benefit payments are made from the general assets of the participating Registrants or, in the case of certain plans acquired in the Merger, from a rabbi trust that is a grantor trust and remains subject to the claims of general creditors under applicable state and federal law. Expenses related to other benefit plans were recorded as follows: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 3 $ 1 $ 2 $ 1 $ 1 $ — $ 2 $ 1 $ 1 Deferred compensation plans 3 — — 4 1 — 4 1 — Amounts related to other benefit plans were included in Benefit Obligations in the Registrants’ accompanying Consolidated Balance Sheets as follows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 8 $ 3 $ 5 $ 8 $ 3 $ 5 Deferred compensation plans 40 6 3 43 7 2 Split-dollar life insurance arrangements 29 1 — 32 1 — (j) Change in Control Agreements and Other Employee Matters CenterPoint Energy has a change in control plan, which was amended and restated on May 1, 2017. The plan generally provides, to the extent applicable, in the case of a change in control of CenterPoint Energy and covered termination of employment, for severance benefits of up to three times annual base salary plus bonus, and other benefits. Certain CenterPoint Energy officers are participants under the plan. Certain key employees of a subsidiary of Vectren have employment agreements that provide payments and other benefits upon a covered termination of employment. As of December 31, 2021, the Registrants’ employees were covered by collective bargaining agreements as follows: Percentage of Employees Covered Agreement Expiration CenterPoint Energy Houston Electric CERC IBEW Local 66 May 2023 15 % 54 % — % OPEIU Local 12 December 2025 2 % — % 3 % Gas Workers Union Local 340 April 2025 5 % — % 12 % IBEW Locals 1393 and USW Locals 12213 & 7441 December 2023 3 % — % — % IBEW Locals 949 December 2025 3 % — % 7 % USW Locals 13-227 June 2022 5 % — % 14 % USW Locals 13-1 July 2022 — % — % 1 % IBEW Local 702 June 2022 3 % — % — % Teamsters Local 135 October 2024 — % — % — % UWUA Local 175 October 2024 1 % — % — % Total 37 % 54 % 37 % Negotiations are currently in progress for the collective bargaining agreements scheduled to expire in 2022 and are expected to be completed before the respective expirations. Board of Directors Actions . On July 22, 2021, CenterPoint Energy announced the decision of the independent directors of the Board to implement a new independent Board leadership and governance structure and appointed a new independent chair of the Board. To implement this new governance structure, the independent directors of the Board eliminated the Executive Chairman position that was formerly held by Milton Carroll. On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy entered into a separation agreement between CenterPoint Energy and Mr. Carroll, dated July 21, 2021. Under the terms of the separation agreement, Mr. Carroll exited the positions of Executive Chairman on July 21, 2021 and Board member on September 30, 2021. Under the terms of the separation agreement, Mr. Carroll received a lump sum cash payment of $28 million and his separation was treated as an “enhanced retirement” for purposes of his outstanding 2019, 2020 and 2021 equity award agreements. On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy has entered into a retention incentive agreement with David J. Lesar, President and Chief Executive Officer of CenterPoint Energy, dated July 20, 2021. For information about the classification of this award, see Note 13. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Registrants are exposed to various market risks. These risks arise from transactions entered into in the normal course of business. The Registrants utilize derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on operating results and cash flows. (a) Non-Trading Activities Commodity Derivative Instruments (CenterPoint Energy). CenterPoint Energy, through its Indiana utilities, enter into certain derivative instruments to mitigate the effects of commodity price movements. Outstanding derivative instruments designated as economic hedges at the Indiana Utilities hedge long-term variable rate natural gas purchases. The Indiana utilities have authority to refund and recover mark-to-market gains and losses associated with hedging natural gas purchases, and thus the gains and losses on derivatives are deferred in a regulatory liability or asset. All other financial instruments do not qualify or are not designated as cash flow or fair value hedges. On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group. The transaction closed on June 1, 2020. As a result, the following disclosures do not include the Energy Services Disposal Group. See Note 4 for further information. Interest Rate Risk Derivative Instruments. From time to time, the Registrants may enter into interest rate derivatives that are designated as economic or cash flow hedges. The objective of these hedges is to offset risk associated with interest rates borne by the Registrants in connection with an anticipated future fixed rate debt offering or other exposure to variable rate debt. The Indiana Utilities have authority to refund and recover mark-to-market gains and losses associated with hedging financing activity, and thus the gains and losses on derivatives are deferred in a regulatory liability or asset. For the impacts of cash flow hedges to Accumulated other comprehensive income, see Note 13. The table below summarizes the Registrants’ outstanding interest rate hedging activity: December 31, 2021 December 31, 2020 Hedging Classification Notional Principal (in millions) Economic hedge (1) $ 84 $ 84 (1) Relates to interest rate derivative instruments at SIGECO. Weather Hedges (CenterPoint Energy and CERC). As of December 31, 2021, CenterPoint Energy and CERC had weather normalization or other rate mechanisms that largely mitigate the impact of weather on Natural Gas in Arkansas, Indiana, Louisiana, Mississippi, Minnesota, Ohio and Oklahoma, as applicable. CenterPoint Energy’s and CERC’s Natural Gas in Texas and CenterPoint Energy’s electric operations in Texas and Indiana do not have such mechanisms, although fixed customer charges are historically higher in Texas for Natural Gas compared to its other jurisdictions. As a result, fluctuations from normal weather may have a positive or negative effect on CenterPoint Energy’s and CERC’s Natural Gas’ results in Texas and on CenterPoint Energy’s electric operations’ results in its Texas and Indiana service territories. CenterPoint Energy and CERC, as applicable, may enter into winter season weather hedges from time to time for certain Natural Gas jurisdictions and electric operations’ service territory to mitigate the effect of fluctuations from normal weather on results of operations and cash flows. These weather hedges are based on heating degree days at 10-year normal weather. Houston Electric and Indiana Electric do not enter into weather hedges. CenterPoint Energy and CERC did not enter into any weather hedges during the year ended December 31, 2021. (b) Derivative Fair Values and Income Statement Impacts (CenterPoint Energy) The following tables present information about derivative instruments and hedging activities. The first table provides a balance sheet overview of Derivative Assets and Liabilities as of December 31, 2021 and 2020, while the last table provides a breakdown of the related income statement impacts for the years ending December 31, 2021, 2020 and 2019. Fair Value of Derivative Instruments and Hedged Items (CenterPoint Energy) December 31, 2021 December 31, 2020 Balance Sheet Location Derivative Derivative Derivative Derivative (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Assets: Non-trading derivative assets $ 9 $ — $ — $ — Natural gas derivatives (1) Other Assets: Non-trading derivative assets 5 — — — Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities — — — 3 Interest rate derivatives Current Liabilities: Non-trading derivative liabilities — 2 — — Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — — — 7 Interest rate derivatives Other Liabilities: Non-trading derivative liabilities — 12 — 20 Indexed debt securities derivative (2) Current Liabilities — 903 — 953 Total $ 14 $ 917 $ — $ 983 (1) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in a liability position with no offsetting amount (2) Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 12 for further information. Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy) Year Ended December 31, Income Statement Location 2021 2020 2019 (in millions) Effects of derivatives not designated as hedging instruments on the income statement: Indexed debt securities derivative Gain (loss) on indexed debt securities $ 50 $ (60) $ (292) Total CenterPoint Energy $ 50 $ (60) $ (292) (c) Credit Risk Contingent Features (CenterPoint Energy) Certain of CenterPoint Energy’s derivative instruments contain provisions that require CenterPoint Energy’s debt to maintain an investment grade credit rating on its long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment. As of December 31, 2021 2020 (in millions) Aggregate fair value of derivatives with credit-risk-related contingent features in a liability position $ 14 $ 20 Fair value of collateral already posted 7 7 Additional collateral required to be posted if credit risk contingent features triggered (1) 7 3 (1) The maximum collateral required if further escalating collateral is triggered would equal the net liability position. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Registrants’ Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities, as well as natural gas inventory that has been designated as the hedged item in a fair value hedge. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value the Registrants’ Level 2 natural gas derivative assets or liabilities. CenterPoint Energy’s Level 2 indexed debt securities derivative is valued using an option model and a discounted cash flow model, which uses projected dividends on the ZENS-Related Securities and a discount rate as observable inputs. Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Unobservable inputs reflect the Registrants’ judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Registrants develop these inputs based on the best information available, including the Registrants’ own data. The Registrants determine the appropriate level for each financial asset and liability on a quarterly basis and recognize transfers between levels at the end of the reporting period. On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group. The transaction closed on June 1, 2020. As a result, the following disclosures do not include the Energy Services Disposal Group. See Note 4 for further information. The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Equity securities $ 1,439 $ — $ — $ 1,439 $ 873 $ — $ — $ 873 Investments, including money market funds (1) 42 — — 42 43 — — 43 Natural gas derivatives — 14 — 14 — — — — Total assets $ 1,481 $ 14 $ — $ 1,495 $ 916 $ — $ — $ 916 Liabilities Indexed debt securities derivative $ — $ 903 $ — $ 903 $ — $ 953 $ — $ 953 Interest rate derivatives — 14 — 14 — 20 — 20 Natural gas derivatives — — — — — 10 — 10 Total liabilities $ — $ 917 $ — $ 917 $ — $ 983 $ — $ 983 Houston Electric December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 27 $ — $ — $ 27 $ 26 $ — $ — $ 26 Total assets $ 27 $ — $ — $ 27 $ 26 $ — $ — $ 26 CERC December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 14 $ — $ — $ 14 $ 13 $ — $ — $ 13 Total assets $ 14 $ — $ — $ 14 $ 13 $ — $ — $ 13 (1) Amounts are included in Prepaid and Other Current Assets in the respective Consolidated Balance Sheets. During 2021 and 2020, CenterPoint Energy did not have any assets or liabilities designated as Level 3. Items Measured at Fair Value on a Nonrecurring Basis As a result of classifying the Arkansas and Oklahoma Natural Gas businesses as held for sale, including the allocation of goodwill, CenterPoint Energy and CERC used a market approach consisting of the contractual sales price adjusted for estimated working capital and other contractual purchase price adjustments to determine fair value of the businesses classified as held for sale, which are Level 2 inputs. Neither CenterPoint Energy nor CERC recognized any gains or losses upon classification of held for sale during 2021. See Note 4 for further information. Based on the severity of the decline in the price of Enable Common Units during the three months ended March 31, 2020 primarily due to the macroeconomic conditions related in part to the COVID-19 pandemic, combined with Enable’s announcement on April 1, 2020 to reduce its quarterly distributions per Enable Common Unit by 50%, and the market outlook indicating excess supply and continued depressed crude oil and natural gas prices impacting the midstream oil and gas industry, CenterPoint Energy determined, in connection with its preparation of the financial statements, that an other than temporary decrease in the value of its investment in Enable had occurred. The impairment analysis compared the estimated fair value of CenterPoint Energy’s investment in Enable to its carrying value. The fair value of the investment was determined using multiple valuation methodologies under both the market and income approaches. Both of these approaches incorporate significant estimates and assumptions, including: Market Approach • quoted price of Enable Common Units; • recent market transactions of comparable companies; and • EBITDA to total enterprise multiples for comparable companies. Income Approach • Enable’s forecasted cash distributions; • projected cash flows of incentive distribution rights; • forecasted growth rate of Enable’s cash distributions; and • determination of the cost of equity, including market risk premiums. Weighting of the Different Approaches Significant unobservable inputs used include the growth rate applied to the projected cash distributions beyond 2020 and the discount rate used to determine the present value of the estimated future cash flows. Based on the significant unobservable estimates and assumptions required, CenterPoint Energy concluded that the fair value estimate should be classified as a Level 3 measurement within the fair value hierarchy. As a result of this analysis, CenterPoint Energy recorded an other than temporary impairment on its investment in Enable of $1,541 million during the year ended December 31, 2020, reducing the carrying value of the investment to its estimated fair value of $848 million as of March 31, 2020. See Note 11 for further discussion of the impairment. During the year ended December 31, 2020, CenterPoint Energy recorded a goodwill impairment charge of $185 million in the Indiana Electric Integrated reporting unit, reducing the carrying value of the reporting unit to its fair value as of March 31, 2020. See Note 6 for further information. As a result of classifying the Infrastructure Services and Energy Services Disposal Groups as held for sale, CenterPoint Energy and CERC recognized a goodwill impairment and loss on held for sale during the year ended December 31, 2020. CenterPoint Energy and CERC, as applicable, used the contractual sales price adjusted for estimated working capital and other contractual purchase price adjustments to determine fair value, which are Level 2 inputs. Using this market approach, the fair value of the Infrastructure Services Disposal Group as of March 31, 2020 was determined to be approximately $864 million and the fair value of the Energy Services Disposal Group as of March 31, 2020 was determined to be approximately $402 million. The same methodology was applied to estimate the fair value of the Infrastructure Services Disposal Group and Energy Services Disposal Group on the closing date and through the settlement of the net working capital adjustment, resulting in additional gains or losses upon sale during 2020 . See Note 4 for further information. Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s equity securities, including ZENS related derivative liabilities, are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. December 31, 2021 December 31, 2020 CenterPoint Energy (1) Houston Electric (1) CERC CenterPoint Energy (1) Houston Electric (1) CERC Long-term debt, including current maturities (in millions) Carrying amount $ 16,086 $ 5,495 $ 4,380 $ 13,401 $ 5,019 $ 2,428 Fair value 17,385 6,230 4,682 15,226 5,957 2,855 (1) Includes Securitization Bond debt. |
Unconsolidated Affiliate (Cente
Unconsolidated Affiliate (CenterPoint Energy and CERC) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Affiliate (CenterPoint Energy and CERC) | Unconsolidated Affiliates (CenterPoint Energy and CERC) Through its investment in Enable, CenterPoint Energy had the ability to significantly influence the operating and financial policies of Enable, a publicly traded MLP, and, accordingly, accounted for its investment in Enable’s common units using the equity method of accounting. Enable was considered to be a VIE because the power to direct the activities that most significantly impact Enable’s economic performance did not reside with the holders of equity investment at risk. However, CenterPoint Energy was not considered the primary beneficiary of Enable since it did not have the power to direct the activities of Enable that were considered most significant to the economic performance of Enable. On February 16, 2021, Enable entered into the Enable Merger Agreement. On December 2, 2021, the Enable Merger closed pursuant to the Enable Merger Agreement. At the closing of the Enable Merger, CenterPoint Energy transferred 100% of the Enable Common Units and Enable Series A Preferred Units it owned in exchange for Energy Transfer Common Units and Energy Transfer Series G Preferred Units, respectively. CenterPoint Energy also received $5 million in cash in exchange for its interests in Enable GP. CenterPoint Energy has no continuing ownership interest in Enable after the close of the Enable Merger. See Note 12 for further information. Pursuant to previously disclosed support agreements, CenterPoint Energy and OGE, who collectively owned approximately 79.2% of Enable’s common units, delivered written consents approving the Enable Merger Agreement and, on a non-binding, advisory basis, the compensation that will or may become payable to Enable’s named executive officers in connection with the transactions contemplated by the Enable Merger Agreement. Upon the consummation of the transactions contemplated by the Enable Merger Agreement, the agreements relating to Enable between CenterPoint Energy, OGE and Enable and certain of their affiliates terminated, and CenterPoint Energy paid $30 million to OGE. The proceeds from the Enable Merger Agreement were allocated to each element based on the relative fair value of the interests being sold. Accordingly, CenterPoint Energy realized gains of $680 million and $1 million related to the transfer of its Enable Common Units and Enable Series A Preferred Units, respectively, from the Enable Merger Agreement. The realized gains from CenterPoint Energy’s transferred Enable Common Units and Enable Series A Preferred Units are reflected as discontinued operations and Other Income, respectively, on CenterPoint Energy’s Statements of Consolidated Income. The carrying value of CenterPoint Energy’s equity method investment in Enable is reflected as held for sale on CenterPoint Energy’s Consolidated Balance Sheet as of December 31, 2020 and equity in earnings (losses) from Enable are reflected as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income. For further information, see Note 4. The Enable Series A Preferred Units are not reflected in the Midstream Investments reportable segment as equity investments without a readily determinable fair value are not included in the scope of discontinued operations. 2020 Impairment in Enable CenterPoint Energy evaluates its equity method investments, when not reflected as held for sale, for impairment when factors indicate that a decrease in the value of its investment has occurred and the carrying amount of its investment may not be recoverable. An impairment loss, based on the excess of the carrying value over the estimated fair value of the investment, is recognized in earnings when an impairment is deemed to be other than temporary. Considerable judgment is used in determining if an impairment loss is other than temporary and the amount of any impairment. CenterPoint Energy reduced the carrying value of its investment in Enable to its estimated fair value of $848 million as of March 31, 2020 and recognized an impairment charge of $1,541 million during the year ended December 31, 2020. For further information, see Note 10. Distributions Received from Enable (CenterPoint Energy and CERC): CenterPoint Energy Year Ended December 31, 2021 2020 2019 Per Unit Cash Distribution Per Unit Cash Distribution Per Unit Cash Distribution (in millions, except per unit amounts) Enable Common Units $ 0.6610 $ 155 $ 0.8263 $ 193 $ 1.2970 $ 303 Enable Series A Preferred Units (1) 2.2965 34 2.5000 36 2.5000 36 Total $ 189 $ 229 $ 339 (1) As of December 31, 2020, the Enable Series A Preferred Units annual distribution rate was 10%. On February 18, 2021, five years after the issue date, the Enable Series A Preferred Units annual distribution rate changed to a percentage of the Stated Series A Liquidation Preference per Enable Series A Preferred Unit equal to the sum of (a) Three-Month LIBOR, as calculated on each applicable date of determination, and (b) 8.5%. Transactions with Enable (CenterPoint Energy and CERC): The transactions with Enable through December 2, 2021 in the following tables exclude transactions with the Energy Services Disposal Group. See Note 4 for further information. CenterPoint Energy and CERC Year Ended December 31, 2021 2020 2019 (in millions) Natural gas expenses, including transportation and storage costs (1) $ 85 $ 86 $ 86 (1) Included in Non-utility costs of revenues, including natural gas on CenterPoint Energy’s and CERC’s respective Statements of Consolidated Income. CenterPoint Energy and CERC December 31, 2020 (in millions) Accounts payable for natural gas purchases from Enable $ 9 Accounts receivable for amounts billed for services provided to Enable 1 Summarized consolidated income (loss) information for Enable is as follows: Year Ended December 31, 2021 (1) 2020 2019 (in millions) Operating revenues $ 3,466 $ 2,463 $ 2,960 Cost of sales, excluding depreciation and amortization 1,959 965 1,279 Depreciation and amortization 382 420 433 Goodwill impairment — 28 86 Operating income 634 465 569 Net income attributable to Enable Common Units 461 52 360 Reconciliation of Equity in Earnings (Losses), net before income taxes: CenterPoint Energy’s interest $ 248 $ 28 $ 193 Basis difference amortization (2) 92 87 47 Loss on dilution, net of proportional basis difference recognition (1) (2) (11) Impairment of CenterPoint Energy’s equity method investment in Enable — (1,541) — Gain on Enable Merger 680 — — CenterPoint Energy’s equity in earnings (losses), net before income taxes (3) $ 1,019 $ (1,428) $ 229 (1) Reflects January 1, 2021 to December 2, 2021 results only due to the closing of the Enable Merger. (2) Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference was being amortized through the year 2048 and ceased upon closing of the Enable Merger. (3) Reported as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income. For further information, see Note 4. Summarized consolidated balance sheet information for Enable is as follows: December 2, December 31, 2021 (1) 2020 (in millions) Current assets $ 594 $ 381 Non-current assets 11,227 11,348 Current liabilities 1,254 582 Non-current liabilities 3,281 4,052 Non-controlling interest 26 26 Preferred equity 362 362 Accumulated other comprehensive loss (1) (6) Enable partners’ equity 6,899 6,713 Reconciliation of Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ equity $ 3,701 $ 3,601 CenterPoint Energy’s basis difference (2) (2,732) (2,819) CenterPoint Energy’s equity method investment in Enable (3) $ 969 $ 782 (1) Reflects balances as of the closing of the Enable Merger on December 2, 2021. (2) Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the year ended December 31, 2020. The basis difference was being amortized through the year 2048 and ceased upon closing of the Enable Merger. (3) Reflected in assets held for sale in CenterPoint Energy’s Consolidated Balance Sheet as of December 31, 2020. For further information, see Note 4. |
Equity Securities and Indexed D
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | 12 Months Ended |
Dec. 31, 2021 | |
Indexed Debt Securities [Abstract] | |
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) | Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (a) Equity Securities At the closing of the Enable Merger, Energy Transfer acquired 100% of Enable’s outstanding equity interests, resulting in the exchange of 233,856,623 Enable Common Units owned by CenterPoint Energy, at the transaction exchange ratio of 0.8595x Energy Transfer Common Units for each Enable Common Unit, for 200,999,768 Energy Transfer Common Units. CenterPoint Energy also received $5 million in cash in exchange for its interest in Enable GP and 384,780 Energy Transfer Series G Preferred Units with an aggregate liquidation preference of approximately $385 million in exchange for 14,520,000 Enable Series A Preferred Units with a carrying value of $363 million. See Notes 4 and 11 for further information. CenterPoint Energy’s sales of equity securities during the year ended December 31, 2021 are as follows: Equity Security/Date Sold Units Sold Proceeds (2) (in millions) Energy Transfer Common Units December 8, 2021 (1) 50,000,000 $ 384 December 10, 2021 100,000,000 $ 745 Energy Transfer Series G Preferred Units December 13, 2021 192,390 $ 191 (1) Settlement date for a forward sale transaction that CNP Midstream entered into through a Forward Sale Agreement on September 1, 2021 with an investment banking financial institution for 50 million Energy Transfer Common Units CNP Midstream received as consideration in the Enable Merger in exchange for the proceeds of the forward sale transaction. (2) Proceeds are net of transaction costs. Gains and losses on equity securities, net of transaction costs, are recorded as Gain (Loss) on Equity Securities in CenterPoint Energy’s Statements of Consolidated Income. Gains (Losses) on Equity Securities Year Ended December 31, 2021 2020 2019 (in millions) AT&T Common $ (43) $ (105) $ 108 Charter Common (8) 154 174 Energy Transfer Common Units (124) — — Energy Transfer Series G Preferred Units 2 — — Other 1 — — $ (172) $ 49 $ 282 CenterPoint Energy recorded unrealized gains (losses) of $(52) million, $49 million, and $282 million for the years ended December 31, 2021, 2020, and 2019, respectively, for equity securities held as of December 31, 2021, 2020, and 2019. CenterPoint Energy and its subsidiaries hold shares of certain securities detailed in the table below, which are classified as trading securities. Shares of AT&T Common and Charter Common are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Shares Held at December 31, Carrying Value at December 31, 2021 2020 2021 2020 (in millions) AT&T Common 10,212,945 10,212,945 $ 251 $ 294 Charter Common 872,503 872,503 569 577 Energy Transfer Common Units 50,999,768 — 420 — Energy Transfer Series G Preferred Units 192,390 — 196 — Other 3 — $ 1,439 $ 871 (b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1.0 billion of which $828 million remained outstanding as of December 31, 2021. Each ZENS is exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares attributable to such note. The number and identity of the reference shares attributable to each ZENS are adjusted for certain corporate events. CenterPoint Energy’s reference shares for each ZENS consisted of the following: December 31, 2021 2020 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 CenterPoint Energy pays interest on the ZENS at an annual rate of 2% plus the amount of any quarterly cash dividends paid in respect of the reference shares attributable to the ZENS. The principal amount of the ZENS is subject to increases or decreases to the extent that the annual yield from interest and cash dividends on the reference shares is less than or more than 2.309%. The adjusted principal amount is defined in the ZENS instrument as “contingent principal.” As of December 31, 2021, the ZENS, having an original principal amount of $828 million and a contingent principal amount of $38 million, were outstanding and were exchangeable, at the option of the holders, for cash equal to 95% of the market value of the reference shares attributable to the ZENS. As of December 31, 2021, the market value of such shares was approximately $820 million, which would provide an exchange amount of $941 for each $1,000 original principal amount of ZENS. At maturity of the ZENS in 2029, CenterPoint Energy will be obligated to pay in cash the higher of the contingent principal amount of the ZENS or an amount based on the then-current market value of the reference shares, which will include any additional publicly-traded securities distributed with respect to the current reference shares prior to maturity. The ZENS obligation is bifurcated into a debt component and a derivative component (the holder’s option to receive the appreciated value of the reference shares at maturity). The bifurcated debt component accretes through interest charges annually up to the contingent principal amount of the ZENS in 2029. Such accretion will be reduced by annual cash interest payments, as described above. The derivative component is recorded at fair value and changes in the fair value of the derivative component are recorded in CenterPoint Energy’s Statements of Consolidated Income. Changes in the fair value of the ZENS-Related Securities held by CenterPoint Energy are expected to substantially offset changes in the fair value of the derivative component of the ZENS. The following table sets forth summarized financial information regarding CenterPoint Energy’s investment in ZENS-Related Securities and each component of CenterPoint Energy’s ZENS obligation. ZENS-Related Debt Derivative (in millions) Balance as of December 31, 2018 $ 540 $ 24 $ 601 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (5) — Loss on indexed debt securities — — 292 Gain on ZENS-Related Securities 282 — — Balance as of December 31, 2019 822 19 893 Accretion of debt component of ZENS — 17 — 2% interest paid — (16) — Distribution to ZENS holders — (5) — Loss on indexed debt securities — — 60 Gain on ZENS-Related Securities 49 — — Balance as of December 31, 2020 871 15 953 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (5) — Gain on indexed debt securities — — (50) Loss on ZENS-Related Securities (51) — — Balance as of December 31, 2021 $ 820 $ 10 $ 903 |
Equity (CenterPoint Energy)
Equity (CenterPoint Energy) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity (CenterPoint Energy) [Text Block] | Equity (CenterPoint Energy) Dividends Declared and Paid (CenterPoint Energy) CenterPoint Energy declared and paid dividends on its Common Stock during 2021, 2020 and 2019 as presented in the table below: Dividends Declared Per Share Dividends Paid Per Share 2021 2020 (2) 2019 2021 2020 (2) 2019 Common Stock $ 0.6600 $ 0.9000 $ 0.8625 $ 0.6500 $ 0.7400 $ 0.8625 Series A Preferred Stock 61.2500 91.8750 30.6250 61.2500 61.2500 30.6250 Series B Preferred Stock 35.0000 87.5000 52.5000 52.5000 70.0000 52.5000 Series C Preferred Stock (1) — 0.6100 — 0.1600 0.4500 — (1) The Series C Preferred Stock was entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. There were no Series C Preferred Stock outstanding or dividends declared in 2019. All of the outstanding Series C Preferred Stock was converted to Common Stock during 2021 as described below. (2) On April 1, 2020, in response to the reduction in cash flow related to the reduction in Enable quarterly common unit distributions announced by Enable on April 1, 2020, CenterPoint Energy announced a reduction of its quarterly Common Stock dividend per share from $0.2900 to $0.1500. Preferred Stock (CenterPoint Energy) Liquidation Preference Per Share Shares Outstanding as of December 31, Outstanding Value as of December 31, 2021 2020 2019 2021 2020 2019 (in millions, except shares and per share amount) Series A Preferred Stock $ 1,000 800,000 800,000 800,000 $ 790 $ 790 $ 790 Series B Preferred Stock 1,000 — 977,400 977,500 — 950 950 Series C Preferred Stock 1,000 — 625,000 — — 623 — 800,000 2,402,400 1,777,500 $ 790 $ 2,363 $ 1,740 Dividend Requirement on Preferred Stock Year Ended December 31, 2021 2020 2019 (in millions) Series A Preferred Stock $ 49 $ 49 $ 49 Series B Preferred Stock 46 68 68 Series C Preferred Stock — 27 — Preferred dividend requirement 95 144 117 Amortization of beneficial conversion feature — 32 — Total income allocated to preferred shareholders $ 95 $ 176 $ 117 Series A Preferred Stock On August 22, 2018, CenterPoint Energy completed the issuance of 800,000 shares of its Series A Preferred Stock, at a price of $1,000 per share, resulting in net proceeds of $790 million after issuance costs. The aggregate liquidation value of the Series A Preferred Stock is $800 million with a per share liquidation value of $1,000. CenterPoint Energy used the net proceeds from the Series A Preferred Stock offering to fund a portion of the Merger and to pay related fees and expenses. Dividends. The Series A Preferred Stock accrue cumulative dividends, calculated as a percentage of the stated amount per share, at a fixed annual rate of 6.125% per annum to, but excluding, September 1, 2023, and at an annual rate of three-month LIBOR plus a spread of 3.270% thereafter to be paid in cash if, when and as declared. If declared, prior to September 1, 2023, dividends are payable semi-annually in arrears on each March 1 and September 1, beginning on March 1, 2019, and, for the period commencing on September 1, 2023, dividends are payable quarterly in arrears each March 1, June 1, September 1 and December 1, beginning on December 1, 2023. Cumulative dividends earned during the applicable periods are presented on CenterPoint Energy’s Statements of Consolidated Income as Preferred stock dividend requirement. Optional Redemption. On or after September 1, 2023, CenterPoint Energy may, at its option, redeem the Series A Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $1,000 per share, plus any accumulated and unpaid dividends thereon to, but excluding, the redemption date. At any time within 120 days after the conclusion of any review or appeal process instituted by CenterPoint Energy, if any, following the occurrence of a ratings event, CenterPoint Energy may, at its option, redeem the Series A Preferred Stock in whole, but not in part, at a redemption price in cash per share equal to $1,020 (102% of the liquidation value of $1,000) plus an amount equal to all accumulated and unpaid dividends thereon to, but excluding, the redemption date, whether or not declared. Ranking. The Series A Preferred Stock, with respect to anticipated dividends and distributions upon CenterPoint Energy’s liquidation or dissolution, or winding-up of CenterPoint Energy’s affairs, ranks or will rank: • senior to Common Stock and to each other class or series of capital stock established after the initial issue date of the Series A Preferred Stock that is expressly made subordinated to the Series A Preferred Stock; • on a parity with any class or series of capital stock established after the initial issue date of the Series A Preferred Stock that is not expressly made senior or subordinated to the Series A Preferred Stock; • junior to any class or series of capital stock established after the initial issue date of the Series A Preferred Stock that is expressly made senior to the Series A Preferred Stock; • junior to all existing and future indebtedness (including indebtedness outstanding under CenterPoint Energy’s credit facilities, senior notes and commercial paper) and other liabilities with respect to assets available to satisfy claims against CenterPoint Energy; and • structurally subordinated to any existing and future indebtedness and other liabilities of CenterPoint Energy’s subsidiaries and capital stock of CenterPoint Energy’s subsidiaries held by third parties. Voting Rights. Holders of the Series A Preferred Stock generally will not have voting rights. Whenever dividends on shares of Series A Preferred Stock have not been declared and paid for the equivalent of three or more semi-annual or six or more quarterly dividend periods (including, for the avoidance of doubt, the dividend period beginning on, and including, the original issue date and ending on, but excluding, March 1, 2019), whether or not consecutive, the holders of such shares of Series A Preferred Stock, voting together as a single class with holders of any and all other series of voting preferred stock (as defined in the Statement of Resolution for the Series A Preferred Stock) then outstanding, will be entitled at CenterPoint Energy’s next annual or special meeting of shareholders to vote for the election of a total of two additional members of CenterPoint Energy’s Board of Directors, subject to certain limitations. This right will terminate if and when all accumulated dividends have been paid in full and, upon such termination, the term of office of each director so elected will terminate at such time and the number of directors on CenterPoint Energy’s Board of Directors will automatically decrease by two, subject to the revesting of such rights in the event of each subsequent nonpayment. Series B Preferred Stock On October 1, 2018, CenterPoint Energy completed the issuance of 19,550,000 depositary shares, each representing a 1/20th interest in a share of its Series B Preferred Stock, at a price of $50 per depositary share, resulting in net proceeds of $950 million after issuance costs. The aggregate liquidation value of Series B Preferred Stock is $978 million with a per share liquidation value of $1,000. The amount issued included 2,550,000 depositary shares issued pursuant to the exercise in full of the option granted to the underwriters to purchase additional depositary shares. Dividends. Dividends on the Series B Preferred Stock were payable on a cumulative basis when, as and if declared at an annual rate of 7.00% on the liquidation value of $1,000 per share. CenterPoint Energy paid declared dividends in cash or, subject to certain limitations, in shares of Common Stock, or in any combination of cash and shares of Common Stock on March 1, June 1, September 1 and December 1 of each year, commencing on December 1, 2018 and ending on, and including, September 1, 2021. Cumulative dividends earned during the applicable periods were presented on CenterPoint Energy’s Statements of Consolidated Income as Preferred stock dividend requirement. Mandatory Conversion. Each remaining outstanding share of the Series B Preferred Stock was converted on the mandatory conversion date, September 1, 2021, into 36.7677 shares of Common Stock. The conversion rate was determined based on a preceding 20-day volume-weighted-average-price of Common Stock. Conversion of Series B Preferred Stock. During 2021, 977,400 shares of Series B Preferred Stock were converted into 35,921,441 shares of Common Stock. As of December 31, 2021, all shares of Series B Preferred Stock have been converted into shares of Common Stock. Series C Preferred Stock Private Placement (CenterPoint Energy) On May 6, 2020, CenterPoint Energy entered into agreements for the private placement of 725,000 shares of its Series C Preferred Stock, at a price of $1,000 share, resulting in net proceeds of $724 million after issuance costs. The Series C Preferred Stock was entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. Each remaining outstanding share of the Series C Preferred Stock was converted on May 7, 2021 into the number of Common Stock equal to the quotient of $1,000 divided by the prevailing conversion price, which was $15.31. Conversion of Series C Preferred Stock . During 2021, 625,000 shares of Series C Preferred Stock were converted into 40,822,990 shares of Common Stock. As of December 31, 2021, all shares of Series C Preferred Stock have been converted into shares of Common Stock. Common Stock Private Placement (CenterPoint Energy) On May 6, 2020, CenterPoint Energy entered into agreements for the private placement of 41,977,612 shares of its Common Stock, at a price of $16.08 share, resulting in net proceeds of $673 million after issuance costs. On June 1, 2020, CenterPoint Energy filed a shelf registration statement with the SEC registering these 41,977,612 shares of Common Stock. Temporary Equity (CenterPoint Energy) On the approval and recommendation of the Compensation Committee and approval of the Board (acting solely through its independent directors), CenterPoint Energy entered into a retention incentive agreement with David J. Lesar, President and Chief Executive Officer of CenterPoint Energy, dated July 20, 2021. Under the terms of the retention incentive agreement, Mr. Lesar will receive equity-based awards under CenterPoint Energy’s LTIP covering a total of 1 million shares of Common Stock (Total Stock Award) to be granted in multiple annual awards. In July 2021, 400 thousand restricted stock unit awards were awarded to Mr. Lesar that will vest in December 2022. Restricted stock unit awards covering the remaining 600 thousand shares will be awarded to Mr. Lesar in February 2022 and February 2023, in each case covering the remainder of the Total Stock Award not previously awarded or such lesser number of restricted stock units as may be permitted under the annual individual award limitations under the CenterPoint Energy’s LTIP and vesting in December 2023. These awards will also fully vest upon death, disability, termination without cause, or resignation for good reason, as defined in the award agreements, that occurs prior to the vesting date. In the event any shares under the Total Stock Award remain unawarded, in February 2024, a fully vested stock bonus award of the remaining shares will be granted. For accounting purposes, the 1 million shares under the Total Stock Award, consisting of both the awarded and unawarded equity-based awards described above, were considered granted in July 2021. In the event of death, disability, termination without cause or resignation for good reason, as defined in the retention incentive agreement, that occurs prior to the full Total Stock Award being awarded, CenterPoint Energy will pay a lump sum cash payment equal to the value of the unawarded equity-based awards, based on the closing trading price of Common Stock on the date of the event’s occurrence. Because the unawarded equity-based awards are redeemable for cash upon events that are not probable at the grant date, the equity associated with the unawarded equity-based awards will be classified as Temporary Equity on CenterPoint Energy’s Consolidated Balance Sheets. Undistributed Retained Earnings As of December 31, 2021 and 2020, CenterPoint Energy’s consolidated retained earnings balance included no undistributed earnings from Enable. Accumulated Other Comprehensive Income (Loss) Changes in accumulated comprehensive income (loss) are as follows: Year Ended December 31, 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (90) $ — $ 10 $ (98) $ (15) $ 10 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans 16 — — (12) — — Other comprehensive income (loss) from unconsolidated affiliates 3 — — (2) — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (1) 1 — 1 — — 1 Actuarial losses (1) 7 — — 7 — — Settlement (2) 4 — — — — — Reclassification of deferred loss from cash flow hedges realized in net income 2 — — — — — Reclassification of deferred loss from cash flow hedges to regulatory assets (3) — — — 19 19 — Tax benefit (expense) (7) — (1) (4) (4) (1) Net current period other comprehensive income (loss) 26 — — 8 15 — Ending Balance $ (64) $ — $ 10 $ (90) $ — $ 10 (1) Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. (2) Amounts presented represent a one-time, non-cash settlement cost (benefit), prior to regulatory deferrals, which are required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. (3) The cost of debt approved by the PUCT as part of Houston Electric’s Stipulation and Settlement Agreement included unrealized gains and losses on interest rate hedges. Accordingly, deferred gains and losses on interest rate hedges were reclassified to regulatory assets or liabilities, as appropriate. |
Short-term Borrowings and Long-
Short-term Borrowings and Long-term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings and Long-term Debt | Short-term Borrowings and Long-term Debt December 31, December 31, Long-Term Current (1) Long-Term Current (1) (in millions) CenterPoint Energy: ZENS due 2029 (2) $ — $ 10 $ — $ 15 CenterPoint Energy senior notes 0.68% to 4.25% due 2024 to 2049 3,650 — 2,700 500 CenterPoint Energy variable rate term loan 0.865% due 2021 — — — 700 CenterPoint Energy pollution control bonds 5.125% due 2028 (3) 68 — 68 — CenterPoint Energy commercial paper (4) (5) 1,400 — 1,078 — VUHI senior notes 3.72% to 6.10% due 2023 to 2045 (6) 377 — 377 55 VUHI commercial paper (4) (5) 350 — 92 — IGC senior notes 6.34% to 7.08% due 2025 to 2029 96 — 96 — SIGECO first mortgage bonds 0.820% to 6.72% due 2022 to 2055 (7) 288 5 293 — Other debt 4 3 6 12 Unamortized debt issuance costs (23) — (17) — Unamortized discount and premium, net (7) — (6) — Houston Electric debt (see details below) 4,975 520 4,406 613 CERC debt (see details below) 4,380 7 2,428 24 Total CenterPoint Energy debt $ 15,558 $ 545 $ 11,521 $ 1,919 Houston Electric: First mortgage bonds 9.15% due 2021 $ — $ — $ — $ 102 General mortgage bonds 2.25% to 6.95% due 2022 to 2051 4,712 300 3,912 300 Restoration Bond Company: System restoration bonds 4.243% due 2022 — 70 69 66 Bond Company IV: Transition bonds 3.028% due 2024 317 150 467 145 Unamortized debt issuance costs (36) — (28) — Unamortized discount and premium, net (18) — (14) — Total Houston Electric debt $ 4,975 $ 520 $ 4,406 $ 613 CERC (8) : Short-term borrowings: Inventory financing (9) $ — $ 7 $ — $ 24 Total CERC short-term borrowings — 7 — 24 Long-term debt: Senior notes 0.62% to 6.625% due 2023 to 2047 $ 3,500 $ — $ 2,100 $ — Commercial paper (4) (5) 899 — 347 — Unamortized debt issuance costs (15) — (15) — Unamortized discount and premium, net (4) — (4) — Total CERC long-term debt 4,380 — 2,428 — Total CERC debt $ 4,380 $ 7 $ 2,428 $ 24 (1) Includes amounts due or exchangeable within one year of the date noted. (2) CenterPoint Energy’s ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 12(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt. (3) These pollution control bonds were secured by general mortgage bonds of Houston Electric as of December 31, 2021 and 2020 and are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations. (4) Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted. (5) Commercial paper issued by CenterPoint Energy, CERC Corp. and VUHI has maturities up to 60 days, 30 days, and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. (6) The senior notes issued by VUHI are guaranteed by SIGECO, Indiana Gas and VEDO. (7) The first mortgage bonds issued by SIGECO subject SIGECO’s properties to a lien under the related mortgage indenture as further discussed below. (8) Issued by CERC Corp. (9) Represents AMA transactions accounted for as an inventory financing. Outstanding obligations related to third-party AMAs associated with utility distribution service in Arkansas and Oklahoma of $36 million as of December 31, 2021 are reflected in current liabilities held for sale on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets. For further information about AMAs, see Notes 4 and 16. Long-term Debt Debt Transactions. During 2021, the following debt instruments were issued or incurred: Registrant Issuance Date Debt Instrument Aggregate Principal Amount Interest Rate Maturity Date (in millions) CERC March 2021 Senior Notes $ 700 0.70% 2023 CERC March 2021 Floating Rate Senior Notes 1,000 Three-month LIBOR plus 0.5% 2023 Total CERC (1) 1,700 Houston Electric March 2021 General Mortgage Bonds 400 2.35% 2031 Houston Electric March 2021 General Mortgage Bonds 700 3.35% 2051 Total Houston Electric (2) 1,100 CenterPoint Energy May 2021 Senior Notes 500 1.45% 2026 CenterPoint Energy May 2021 Senior Notes 500 2.65% 2031 CenterPoint Energy May 2021 Floating Rate Senior Notes 700 SOFR plus 0.65% 2024 Total CenterPoint Energy (3) $ 4,500 (1) In February 2021, CERC Corp. received financing commitments totaling $1.7 billion on a 364-day term loan facility to bridge any working capital needs related to the February 2021 Winter Storm Event. Total proceeds of the senior notes and floating rate senior note offerings, net of issuance expenses and fees, of approximately $1.69 billion were used for general corporate purposes, including to fund working capital. Upon the consummation of its senior notes offerings, in March 2021, CERC Corp. terminated all of the commitments for the 364-day term loan facility. (2) Total proceeds, net of issuance expenses and fees, of approximately $1.08 billion were used for general limited liability company purposes, including capital expenditures and the repayment of outstanding debt discussed below and Houston Electric’s borrowings under the CenterPoint Energy money pool. (3) Total proceeds, net of issuance expenses and fees, of approximately $1.69 billion, excluding amounts issued by Houston Electric and CERC, were used for general corporate purposes, including the repayment of outstanding debt discussed below and a portion of CenterPoint Energy’s outstanding commercial paper. Debt Repayments and Redemptions. During 2021, the following debt instruments were repaid at maturity or redeemed, excluding scheduled principal payments of $211 million on the Securitization bonds: Registrant Repayment/Redemption Date Debt Instrument Aggregate Principal Interest Rate Maturity Date (in millions) CERC (1) December 2021 Senior Notes $ 300 3.55% 2023 Total CERC 300 Houston Electric March 2021 First Mortgage Bonds 102 9.15% 2021 Houston Electric (2) May 2021 General Mortgage Bonds 300 1.85% 2021 Total Houston Electric 402 CenterPoint Energy (3) January 2021 Senior Notes 250 3.85% 2021 CenterPoint Energy (4) May 2021 Term Loan 700 0.76% 2021 CenterPoint Energy (5) June 2021 Senior Notes 500 3.60% 2021 CenterPoint Energy November 2021 Senior Notes 55 4.67% 2021 CenterPoint Energy (6) December 2021 Senior Notes 500 2.50% 2022 Total CenterPoint Energy $ 2,707 (1) In December 2021, CERC provided notice of redemption and on December 30, 2021, CERC redeemed all of the outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest and an applicable make-whole premium. (2) In April 2021, Houston Electric provided notice of redemption and on May 1, 2021, Houston Electric redeemed all of the outstanding bonds of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. (3) In December 2020, CenterPoint Energy provided notice of redemption of a portion of its outstanding $500 million aggregate principal amount of the series and on January 15, 2021, CenterPoint Energy redeemed $250 million aggregate principal amount of the series at a redemption price equal to 100% of the principal amount redeemed, plus accrued and unpaid interest and an applicable make-whole premium. (4) In April 2021, CenterPoint Energy amended its existing term loan agreement by extending its maturity from May 15, 2021 to June 14, 2021. The outstanding LIBOR rate loan balance was prepaid in full at a price equal to 100% of the principal amount, plus accrued and unpaid interest, which was calculated based on the interest rate at maturity. (5) In May 2021, CenterPoint Energy provided notice of redemption and on June 1, 2021, CenterPoint Energy redeemed all of the outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest and an applicable make-whole premium. (6) In December 2021, CenterPoint Energy provided notice of redemption and on December 30, 2021, CenterPoint Energy redeemed all of the outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest and an applicable make-whole premium. CenterPoint Energy and CERC recorded losses on early extinguishment of debt, including make-whole premiums and recognition of deferred debt related costs, in Interest expense and other finance charges on their respective Statements of Consolidated Income, of $53 million and $11 million, respectively, during the year ended December 31, 2021, and $2 million at both for the year ended December 31, 2020. No losses on early extinguishment of debt were recorded during the year ended December 31, 2019. On January 14, 2022, CERC Corp. provided notice of redemption and on January 31, 2022, CERC Corp. redeemed $425 million aggregate principal amount of CERC’s outstanding Floating Rate Senior Notes due 2023 at a redemption price equal to 100% of the principal amount of the senior notes to be redeemed plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. Securitization Bonds. As of December 31, 2021, CenterPoint Energy and Houston Electric had special purpose subsidiaries consisting of the Bond Companies, which they consolidate. The consolidated special purpose subsidiaries are wholly-owned, bankruptcy remote entities that were formed solely for the purpose of purchasing and owning transition or system restoration property through the issuance of transition bonds or system restoration bonds and activities incidental thereto. These Securitization Bonds are payable only through the imposition and collection of “transition” or “system restoration” charges, as defined in the Texas Public Utility Regulatory Act, which are irrevocable, non-bypassable charges to provide recovery of authorized qualified costs. CenterPoint Energy and Houston Electric have no payment obligations in respect of the Securitization Bonds other than to remit the applicable transition or system restoration charges they collect as set forth in servicing agreements among Houston Electric, the Bond Companies and other parties. Each special purpose entity is the sole owner of the right to impose, collect and receive the applicable transition or system restoration charges securing the bonds issued by that entity. Creditors of CenterPoint Energy or Houston Electric have no recourse to any assets or revenues of the Bond Companies (including the transition and system restoration charges), and the holders of Securitization Bonds have no recourse to the assets or revenues of CenterPoint Energy or Houston Electric. Credit Facilities. In February 2021, each of CenterPoint Energy, Houston Electric, CERC Corp. and VUHI replaced their existing revolving credit facilities with new amended and restated credit facilities. The size of the CenterPoint Energy facility decreased from $3.3 billion to $2.4 billion, while the sizes of the Houston Electric, CERC Corp. and VUHI facilities remained unchanged. The Registrants had the following revolving credit facilities as of December 31, 2021: Execution Registrant Size of Draw Rate of LIBOR plus (1) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of December 31, 2021 (2) Termination (in millions) February 4, 2021 CenterPoint Energy $ 2,400 1.625% 65% (3) 61.8% February 4, 2024 February 4, 2021 CenterPoint Energy (4) 400 1.250% 65% 48.9% February 4, 2024 February 4, 2021 Houston Electric 300 1.375% 67.5% (3) 56.2% February 4, 2024 February 4, 2021 CERC 900 1.250% 65% 60.6% February 4, 2024 Total $ 4,000 (1) Based on credit ratings as of December 31, 2021. (2) As defined in the revolving credit facility agreement, excluding Securitization Bonds. (3) For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. (4) This credit facility was issued by VUHI, is guaranteed by SIGECO, Indiana Gas and VEDO and includes a $20 million letter of credit sublimit. This credit facility backstops VUHI’s commercial paper program. The Registrants, as well as the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of December 31, 2021. As of December 31, 2021 and 2020, the Registrants had the following revolving credit facilities and utilization of such facilities: December 31, 2021 December 31, 2020 Registrant Loans Letters Commercial Weighted Average Interest Rate Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy (1) $ — $ 11 $ 1,400 0.34 % $ — $ 11 $ 1,078 0.23 % CenterPoint Energy (2) — — 350 0.21 % — — 92 0.22 % Houston Electric — — — — % — — — — % CERC — — 899 0.26 % — — 347 0.23 % Total $ — $ 11 $ 2,649 $ — $ 11 $ 1,517 (1) CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. (2) This credit facility was issued by VUHI and is guaranteed by SIGECO, Indiana Gas and VEDO. Maturities. As of December 31, 2021, maturities of long-term debt, excluding the ZENS obligation and unamortized discounts, premiums and issuance costs, were as follows: CenterPoint Energy (1) Houston Electric (1) CERC Securitization Bonds (in millions) 2022 $ 524 $ 520 $ — $ 220 2023 2,113 356 1,700 156 2024 4,283 161 899 161 2025 51 — — — 2026 860 300 — — (1) These maturities include Securitization Bonds principal repayments on scheduled payment dates. Liens. As of December 31, 2021, Houston Electric’s assets were subject to liens securing approximately $4.8 billion of general mortgage bonds outstanding under the General Mortgage, including approximately $68 million held in trust to secure pollution control bonds that mature in 2028 for which CenterPoint Energy is obligated. The general mortgage bonds that are held in trust to secure pollution control bonds are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations. Houston Electric may issue additional general mortgage bonds on the basis of retired bonds, 70% of property additions or cash deposited with the trustee. Houston Electric could issue approximately $4.6 billion of additional general mortgage bonds on the basis of retired bonds and 70% of property additions as of December 31, 2021. No first mortgage bonds are outstanding under the Mortgage, and Houston Electric is contractually obligated to not issue any additional first mortgage bonds under the Mortgage and is undertaking actions to release the lien of the Mortgage. As of December 31, 2021, SIGECO had approximately $293 million aggregate principal amount of first mortgage bonds outstanding. Generally, of SIGECO’s real and tangible property is subject to the lien of SIGECO’s mortgage indenture. SIGECO may issue additional bonds under its mortgage indenture up to 60% of currently unfunded property additions. As of December 31, 2021, approximately $1.4 billion of additional first mortgage bonds could be issued on this basis. However, SIGECO is also limited in its ability to issue additional bonds under its mortgage indenture due to certain provisions in its parent’s, VUHI, debt agreements. Other. As of December 31, 2021, certain financial institutions agreed to issue, from time to time, up to $20 million of letters of credit on behalf of certain of Vectren’s subsidiaries in exchange for customary fees. These agreements to issue letters of credit expire on December 31, 2021. As of December 31, 2021, such financial institutions had issued $1 million of letters of credit on behalf of these subsidiaries. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the Registrant’s income tax expense (benefit) were as follows: Year Ended December 31, 2021 2020 2019 (in millions) CenterPoint Energy - Continuing Operations Current income tax expense (benefit): Federal $ — $ (36) $ (6) State (28) 32 13 Total current expense (benefit) (28) (4) 7 Deferred income tax expense (benefit): Federal 78 63 48 State 60 21 (25) Total deferred expense 138 84 23 Total income tax expense $ 110 $ 80 $ 30 Year Ended December 31, 2021 2020 2019 (in millions) CenterPoint Energy - Discontinued Operations Current income tax expense: Federal $ 91 $ 152 $ 54 State 35 28 8 Total current expense 126 180 62 Deferred income tax expense (benefit): Federal 127 (422) 26 State (52) (91) 20 Total deferred expense (benefit) 75 (513) 46 Total income tax expense (benefit) $ 201 $ (333) $ 108 Houston Electric Current income tax expense: Federal $ 22 $ 76 $ 84 State 22 19 20 Total current expense 44 95 104 Deferred income tax expense (benefit): Federal 31 (42) (24) State 1 — — Total deferred expense (benefit) 32 (42) (24) Total income tax expense $ 76 $ 53 $ 80 CERC - Continuing Operations Current income tax expense (benefit): State $ (26) $ 4 $ 5 Total current expense (benefit) (26) 4 5 Deferred income tax expense (benefit): Federal 49 26 26 State 28 67 (34) Total deferred expense (benefit) 77 93 (8) Total income tax expense (benefit) $ 51 $ 97 $ (3) CERC - Discontinued Operations Current income tax expense: State — — 2 Total current expense — — 2 Deferred income tax expense (benefit): Federal — — 13 State — (2) 2 Total deferred expense (benefit) — (2) 15 Total income tax expense (benefit) $ — $ (2) $ 17 A reconciliation of income tax expense (benefit) using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows: Year Ended December 31, 2021 2020 2019 (in millions) CenterPoint Energy - Continuing Operations (1) (2) (3) Income before income taxes $ 778 $ 563 $ 545 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 163 118 114 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 63 40 27 State valuation allowance, net of federal income tax (15) 1 (4) State law change, net of federal income tax (23) — (33) Excess deferred income tax amortization (75) (76) (55) Goodwill impairment — 39 — Net operating loss carryback — (37) — Other, net (3) (5) (19) Total (53) (38) (84) Total income tax expense $ 110 $ 80 $ 30 Effective tax rate 14 % 14 % 6 % CenterPoint Energy - Discontinued Operations (4)(5) (6) Income (loss) before income taxes $ 1,019 $ (1,589) $ 384 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense (benefit) 214 (334) 81 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 14 (60) 9 State law change, net of federal income tax (27) — 12 Goodwill impairment — 25 8 Tax impact of sale of Energy Services and Infrastructure Services Disposal Groups — 30 — Other, net — 6 (2) Total (13) 1 27 Total income tax expense (benefit) $ 201 $ (333) $ 108 Effective tax rate 20 % 21 % 28 % Houston Electric (7) (8) (9) Income before income taxes $ 457 $ 387 $ 436 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 96 81 92 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 18 15 16 Excess deferred income tax amortization (41) (42) (21) Other, net 3 (1) (7) Total (20) (28) (12) Total income tax expense $ 76 $ 53 $ 80 Effective tax rate 17 % 14 % 18 % Year Ended December 31, 2021 2020 2019 (in millions) CERC - Continuing Operations (10) (11) (12) Income before income taxes $ 305 $ 244 $ 186 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 64 51 39 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 33 55 (15) State law change, net of federal income tax (15) — (4) State valuation allowance, net of federal income tax (15) 1 (4) Excess deferred income tax amortization (16) (16) (18) Other, net — 6 (1) Total (13) 46 (42) Total income tax expense (benefit) $ 51 $ 97 $ (3) Effective tax rate 17 % 40 % (2) % CERC - Discontinued Operations (13) (14) Income (loss) before income taxes $ — $ (68) $ 40 Federal statutory income tax rate — % 21 % 21 % Expected federal income tax expense (benefit) — (14) 8 Increase in tax expense resulting from: State income tax expense, net of federal income tax — (2) 3 Goodwill impairment — 10 8 Other, net — 4 (2) Total — 12 9 Total income tax expense (benefit) $ — $ (2) $ 17 Effective tax rate — % 3 % 43 % (1) Recognized a $75 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $23 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (2) Recognized a $76 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $39 million deferred tax expense for the non-deductible portion of the goodwill impairment on SIGECO, and a $37 million benefit for the NOL carryback claim allowed by the CARES Act. (3) Recognized a $55 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $33 million net benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and a $4 million net benefit for the reduction in valuation allowances on certain state NOLs that are now expected to be realized. (4) Recognized a $27 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions. (5) Recognized a $25 million deferred tax expense for the non-deductible portion of the goodwill impairment on both the Energy Services and Infrastructure Services Disposal Groups. Also, recognized a $30 million net tax expense on both the sale of the Energy Services and Infrastructure Services Disposal Groups. (6) Recognized a $12 million deferred tax expense for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and an $8 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. (7) Recognized a $41 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (8) Recognized a $42 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (9) Recognized a $21 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (10) Recognized a $15 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, a $16 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (11) Recognized a $16 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulatory in certain jurisdictions. (12) Recognized an $18 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $4 million net benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions and a $4 million net benefit for the reduction in valuation allowances on certain state NOLs that are now expected to be realized. (13) Recognized a $10 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. (14) Recognized an $8 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows: December 31, 2021 2020 (in millions) CenterPoint Energy Deferred tax assets: Benefits and compensation $ 120 $ 141 Regulatory liabilities 396 435 Loss and credit carryforwards 76 103 Asset retirement obligations 130 152 Indexed debt securities derivative 36 47 Investment in unconsolidated affiliates 1 — Other 50 52 Valuation allowance (11) (26) Total deferred tax assets 798 904 Deferred tax liabilities: Property, plant and equipment 2,912 2,790 Investment in unconsolidated affiliates — 624 Regulatory assets 741 325 Investment in ZENS and equity securities related to ZENS 693 649 Investment in equity securities 195 — Other 161 119 Total deferred tax liabilities 4,702 4,507 Net deferred tax liabilities $ 3,904 $ 3,603 Houston Electric Deferred tax assets: Regulatory liabilities $ 175 $ 201 Benefits and compensation 13 17 Asset retirement obligations 9 9 Other 10 9 Total deferred tax assets 207 236 Deferred tax liabilities: Property, plant and equipment 1,215 1,159 Regulatory assets 114 118 Total deferred tax liabilities 1,329 1,277 Net deferred tax liabilities $ 1,122 $ 1,041 December 31, 2021 2020 (in millions) CERC Deferred tax assets: Benefits and compensation $ 25 $ 28 Regulatory liabilities 139 147 Loss and credit carryforwards 571 143 Asset retirement obligations 118 140 Other 26 26 Valuation allowance — (15) Total deferred tax assets 879 469 Deferred tax liabilities: Property, plant and equipment 948 916 Regulatory assets 514 53 Other 97 84 Total deferred tax liabilities 1,559 1,053 Net deferred tax liabilities $ 680 $ 584 Tax Attribute Carryforwards and Valuation Allowance . CenterPoint Energy has no federal NOL carryforwards and no federal charitable contribution carryforwards as of December 31, 2021. As of December 31, 2021, CenterPoint Energy had $1.3 billion of state NOL carryforwards that expire between 2022 and 2041, and $7 million of state tax credits that do not expire. CenterPoint Energy reported a valuation allowance of $11 million because it is more likely than not that the benefit from certain state NOL carryforwards will not be realized. Due to a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period during 2021, CenterPoint Energy released a $15 million valuation allowance on certain Louisiana NOLs. CERC has $2.3 billion of federal NOL carryforwards which have an indefinite carryforward period. CERC has $972 million of gross state NOL carryforwards which expire between 2022 and 2041 and $7 million of state tax credits which do not expire. Due to a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period during 2021, CERC released a $15 million valuation allowance on certain Louisiana NOLs. A reconciliation of CenterPoint Energy’s beginning and ending balance of unrecognized tax benefits, excluding interest and penalties, for 2021 and 2020 are as follows: Year Ended December 31, 2021 2020 (in millions) Balance, beginning of year $ 7 $ 8 Increases related to tax positions of prior years — 3 Decreases related to tax positions of prior years (4) (4) Balance, end of year $ 3 $ 7 CenterPoint Energy’s net unrecognized tax benefits, including penalties and interest, were $4 million as of December 31, 2021 and are included in other non-current liabilities in the Consolidated Financial Statements. Included in the balance of uncertain tax positions as of December 31, 2021 are $2 million of tax benefits that, if recognized, would affect the effective tax rate. The above table does not include $1 million of accrued penalties and interest as of December 31, 2021. During 2021, CenterPoint Energy released a $6 million net uncertain tax liability, including interest and penalties, upon acceptance of an accounting method change filed with the IRS in 2019. The Registrants recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. The Registrants believe that it is reasonably possible that a decrease of up to $3 million in unrecognized tax benefits, including penalties and interest, may occur in the next 12 months as a result of a lapse of statutes on older exposures, a tax settlement, and/or a resolution of open audits. Tax Audits and Settlements . Tax years through 2018 have been audited and settled with the IRS for CenterPoint Energy. For the 2019-2021 tax years, the Registrants are participants in the IRS’s Compliance Assurance Process. Vectren’s pre-Merger 2014-2019 tax years are now under audit by IRS. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Purchase Obligations (CenterPoint Energy and CERC) Commitments include minimum purchase obligations related to CenterPoint Energy’s and CERC’s Natural Gas reportable segment and CenterPoint Energy’s Electric reportable segment. A purchase obligation is defined as an agreement to purchase goods or services that is enforceable and legally binding on the registrant and that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Contracts with minimum payment provisions have various quantity requirements and durations and are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s and CERC’s Consolidated Balance Sheets as of December 31, 2021 and 2020. These contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas and coal supply commitments also include transportation contracts that do not meet the definition of a derivative. On February 9, 2021, Indiana Electric entered into a BTA with a subsidiary of Capital Dynamics. Pursuant to the BTA, Capital Dynamics, with its partner Tenaska, will build a 300 MW solar array in Posey County, Indiana through a special purpose entity, Posey Solar. Upon completion of construction, currently projected to be at the end of 2023, and subject to IURC approval, which was received on October 27, 2021, Indiana Electric will acquire Posey Solar and its solar array assets for a fixed purchase price. Due to rising cost for the project, caused in part by supply chain issues in the energy industry, the rising cost of commodities and community feedback, CenterPoint Energy, along with Capital Dynamics, recently announced plans to downsize the project to approximately 200 MW. Indiana Electric collaboratively agreed to the scope change and is currently working through contract negotiations, contingent on further IURC review and approval. As of December 31, 2021, minimum purchase obligations were approximately: Natural Gas and Coal Supply (1) Other (2) CenterPoint Energy CERC CenterPoint Energy (in millions) 2022 $ 560 $ 322 $ 66 2023 444 253 500 2024 378 247 178 2025 318 206 30 2026 254 176 29 2027 and beyond 1,586 1,282 596 (1) On January 10, 2022, CERC Corp. completed the sale of its Arkansas and Oklahoma Natural Gas businesses; therefore minimum purchase obligations for the Arkansas and Oklahoma Natural Gas businesses have been excluded from the table above. For additional information, see Note 4. (2) CenterPoint Energy’s undiscounted minimum payment obligations related to PPAs with commitments ranging from 15 to 25 years and its purchase commitment under its BTA in Posey County, Indiana at the original contracted amount, prior to any renegotiation, are included above. The remaining undiscounted payment obligations relate primarily to technology hardware and software agreements. Excluded from the table above are estimates for cash outlays from other PPAs through Indiana Electric that do not have minimum thresholds but do require payment when energy is generated by the provider. Costs arising from certain of these commitments are pass-through costs, generally collected dollar-for-dollar from retail customers through regulator-approved cost recovery mechanisms (b) AMAs (CenterPoint Energy and CERC) Upon expiration of the AMAs with the Energy Services Disposal Group discussed in Note 4, CenterPoint Energy’s and CERC’s Natural Gas businesses entered into new third-party AMAs beginning in April 2021 associated with their utility distribution service in Arkansas, Indiana, Louisiana, Mississippi, Oklahoma and Texas. Additionally, CenterPoint Energy’s and CERC’s Natural Gas business in Minnesota entered into a third-party AMA beginning in February 2021. The AMAs have varying terms, the longest of which expires in 2027. Pursuant to the provisions of the agreements, CenterPoint Energy’s and CERC’s Natural Gas either sells natural gas to the asset manager and agrees to repurchase an equivalent amount of natural gas throughout the year at the same cost, or simply purchases its full natural gas requirements at each delivery point from the asset manager. Generally, AMAs are contracts between CenterPoint Energy’s and CERC’s Natural Gas and an asset manager that are intended to transfer the working capital obligation and maximize the utilization of the assets. In these agreements, CenterPoint Energy’s and CERC’s Natural Gas agrees to release transportation and storage capacity to other parties to manage natural gas storage, supply and delivery arrangements for CenterPoint Energy’s and CERC’s Natural Gas and to use the released capacity for other purposes when it is not needed for CenterPoint Energy’s and CERC’s Natural Gas. CenterPoint Energy’s and CERC’s Natural Gas may receive compensation from the asset manager through payments made over the life of the AMAs. CenterPoint Energy’s and CERC’s Natural Gas has an obligation to purchase their winter storage requirements that have been released to the asset manager under these AMAs. For amounts outstanding under these AMAs, see Notes 4 and 14. (c) Guarantees and Product Warranties (CenterPoint Energy) In the normal course of business, Energy Systems Group enters into contracts requiring it to timely install infrastructure, operate facilities, pay vendors and subcontractors and support warranty obligations and, at times, issue payment and performance bonds and other forms of assurance in connection with these contracts. Specific to Energy Systems Group’s role as a general contractor in the performance contracting industry, as of December 31, 2021, there were 53 open surety bonds supporting future performance with an aggregate face amount of approximately $569 million. Energy Systems Group’s exposure is less than the face amount of the surety bonds and is limited to the level of uncompleted work under the contracts. As of December 31, 2021, approximately 30% of the work was yet to be completed on projects with open surety bonds. Further, various subcontractors issue surety bonds to Energy Systems Group. In addition to these performance obligations, Energy Systems Group also warrants the functionality of certain installed infrastructure generally for one year and the associated energy savings over a specified number of years. As of December 31, 2021, there were 35 warranties totaling $550 million and an additional $1.2 billion in energy savings commitments not guaranteed by Vectren Corp. Since Energy Systems Group’s inception in 1994, CenterPoint Energy believes Energy Systems Group has had a history of generally meeting its performance obligations and energy savings guarantees and its installed products operating effectively. CenterPoint Energy assessed the fair value of its obligation for such guarantees as of December 31, 2021 and no amounts were recorded on CenterPoint Energy’s Consolidated Balance Sheets. CenterPoint Energy issues parent company level guarantees to certain vendors, customers and other commercial counterparties of Energy Systems Group. These guarantees do not represent incremental consolidated obligations, but rather, represent guarantees of subsidiary obligations to allow those subsidiaries to conduct business without posting other forms of assurance. As of December 31, 2021, CenterPoint Energy, primarily through Vectren, has issued parent company level guarantees supporting Energy Systems Group’s obligations. For those obligations where potential exposure can be estimated, management estimates the maximum exposure under these guarantees to be approximately $514 million as of December 31, 2021. This exposure primarily relates to energy savings guarantees on federal energy savings performance contracts. Other parent company level guarantees, certain of which do not contain a cap on potential liability, have been issued in support of federal operations and maintenance projects for which a maximum exposure cannot be estimated based on the nature of the projects. While there can be no assurance that performance under any of these parent company guarantees will not be required in the future, CenterPoint Energy considers the likelihood of a material amount being incurred as remote. (d) Guarantees and Product Warranties (CenterPoint Energy and CERC) On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group. The transaction closed on June 1, 2020. In the normal course of business prior to June 1, 2020, the Energy Services Disposal Group through CES, traded natural gas under supply contracts and entered into natural gas related transactions under transportation, storage and other contracts. In connection with the Energy Services Disposal Group’s business activities prior to the closing of the sale of the Energy Services Disposal Group on June 1, 2020, CERC Corp. issued guarantees to CES’s counterparties to guarantee the payment of CES’s obligations. When CES remained wholly owned by CERC Corp., these guarantees did not represent incremental consolidated obligations, but rather, these guarantees represented guarantees of CES’s obligations to allow it to conduct business without posting other forms of assurance. See Note 4 for further information. A CERC Corp. guarantee primarily had a one- or two-year term, although CERC Corp. would generally not be released from obligations incurred by CES prior to the termination of such guarantee unless the beneficiary of the guarantee affirmatively released CERC Corp. from its obligations under the guarantee. Throughout CERC Corp.’s ownership of CES and subsequent to the sale of the Energy Services Disposal Group through December 31, 2021, CERC Corp. did not pay any amounts under guarantees of CES’s obligations. Under the terms of the Equity Purchase Agreement, Symmetry Energy Solutions Acquisition must generally use reasonable best efforts to replace existing CERC Corp. guarantees with credit support provided by a party other than CERC Corp. as of and after the closing of the transaction. Additionally, to the extent that CERC Corp. retains any exposure relating to certain guarantees of CES’s obligations 90 days after closing of the transaction, Symmetry Energy Solutions Acquisition will pay a 3% annualized fee on such exposure, increasing by 1% on an annualized basis every three months. As of December 31, 2020, CES had provided replacement credit support to counterparties to whom CERC Corp. had issued guarantees prior to June 1, 2020, representing all $23 million of the estimated remaining exposure under the previously issued guarantees. CERC believes that counterparties to whom replacement credit support has been provided would seek payment if needed under such replacement credit support instead of a CERC Corp. guarantee. No additional guarantees were provided by CERC Corp. to CES subsequent to the closing of the transaction on June 1, 2020. If CERC Corp. is required to pay a counterparty under a guarantee in respect of obligations of CES, Symmetry Energy Solutions Acquisition is required to promptly reimburse CERC Corp. for all amounts paid. If Symmetry Energy Solutions Acquisition fails to reimburse CERC Corp., CERC Corp. has the contractual right to seek payment from Shell Energy North America (US), L.P. in an amount up to $40 million in the aggregate. While there can be no assurance that payment under any of these guarantees will not be required in the future, CenterPoint Energy and CERC consider the likelihood of a material amount being incurred as remote. CenterPoint Energy and CERC recorded no amounts on their respective Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020 related to the performance of these guarantees. (e) Legal, Environmental and Other Matters Legal Matters Minnehaha Academy (CenterPoint Energy and CERC). On August 2, 2017, a natural gas explosion occurred at the Minnehaha Academy in Minneapolis, Minnesota, resulting in the deaths of two school employees, serious injuries to others and significant property damage to the school. CenterPoint Energy, certain of its subsidiaries, including CERC, and the contractor company working in the school were named in wrongful death, property damage and personal injury litigation arising out of the incident and have now reached confidential settlement agreements in all litigation, and all related governmental matters were previously concluded. CenterPoint Energy’s and CERC’s general and excess liability insurance policies provide coverage for third party bodily injury and property damage claims. These matters are now concluded. Litigation Related to the Merger (CenterPoint Energy). With respect to the Merger, in July 2018, seven separate lawsuits were filed against Vectren and the individual directors of Vectren’s Board of Directors in the U.S. District Court for the Southern District of Indiana. These lawsuits alleged violations of Sections 14(a) of the Exchange Act and SEC Rule 14a-9 on the grounds that the Vectren Proxy Statement filed on June 18, 2018 was materially incomplete because it omitted material information concerning the Merger. The District Court consolidated and subsequently dismissed the lawsuits with prejudice, and the plaintiffs appealed. On September 13, 2021, the U.S. Court of Appeals for the Seventh Circuit affirmed the District Court’s order of dismissal. The plaintiffs did not seek rehearing in the Court of Appeals nor review by the Supreme Court of the United States. This matter is now concluded. Litigation Related to the February 2021 Winter Storm Event. With respect to the February 2021 Winter Storm Event, CenterPoint Energy and Houston Electric, along with ERCOT, power generation companies, and others, have received claims and lawsuits filed by plaintiffs alleging personal injury, property damage and other injuries and damages. Additionally, various regulatory and governmental entities have announced that they intend to conduct or are conducting inquiries, investigations and other reviews of the February 2021 Winter Storm Event and the efforts made by various entities to prepare for, and respond to, this event, including the electric generation shortfall issues. Such entities include the United States Congress, FERC, NERC, Texas RE, ERCOT, Texas government entities and officials such as the Texas Governor’s office, the Texas Legislature, the Texas Attorney General, the PUCT, the City of Houston and other municipal and county entities in Houston Electric’s service territory, among other entities. Like other Texas TDUs, Houston Electric has become involved in certain of the above-referenced investigations, litigation or other regulatory and legal proceedings regarding their efforts to restore power and their compliance with NERC, ERCOT and PUCT rules and directives. CenterPoint Energy and Houston Electric have responded to inquiries from the Texas Attorney General and the Galveston County District Attorney’s Office, and CenterPoint Energy and CERC have responded to inquiries from the Arkansas, Minnesota and Oklahoma Attorneys General. CenterPoint Energy and Houston Electric are subject to, and may be further subject to, litigation and claims. Such claims include, or in the future could include, wrongful death, personal injury and property damage claims, lawsuits for impacts on businesses and other organizations and entities and shareholder claims, among other claims or litigation matters. CenterPoint Energy and Houston Electric, along with numerous other entities, have been named as defendants in such litigation, all of which is now pending in state court as part of a multi-district litigation proceeding. CenterPoint Energy and Houston Electric intend to vigorously defend themselves against the claims raised. CenterPoint Energy, Houston Electric and CERC are unable to predict the consequences of any such matters or to estimate a range of potential losses. Environmental Matters MGP Sites. CenterPoint Energy, CERC and their predecessors operated MGPs in the past. In addition, certain of CenterPoint Energy’s subsidiaries acquired through the Merger operated MGPs in the past. The costs CenterPoint Energy or CERC, as applicable, expect to incur to fulfill their respective obligations are estimated by management using assumptions based on actual costs incurred, the timing of expected future payments and inflation factors, among others. While CenterPoint Energy and CERC have recorded all costs which they presently are obligated to incur in connection with activities at these sites, it is possible that future events may require remedial activities which are not presently foreseen, and those costs may not be subject to PRP or insurance recovery. (i) Minnesota MGPs (CenterPoint Energy and CERC) . With respect to certain Minnesota MGP sites, CenterPoint Energy and CERC have completed state-ordered remediation and continue state-ordered monitoring and water treatment. CenterPoint Energy and CERC recorded a liability as reflected in the table below for continued monitoring and any future remediation required by regulators in Minnesota. (ii) Indiana MGPs (CenterPoint Energy) . In the Indiana Gas service territory, the existence, location and certain general characteristics of 26 gas manufacturing and storage sites have been identified for which CenterPoint Energy may have some remedial responsibility. A remedial investigation/feasibility study was completed at one of the sites under an agreed upon order between Indiana Gas and the IDEM, and a Record of Decision was issued by the IDEM in January 2000. The remaining sites have been submitted to the IDEM’s VRP. CenterPoint Energy has also identified its involvement in 5 manufactured gas plant sites in SIGECO’s service territory, all of which are currently enrolled in the IDEM’s VRP. CenterPoint Energy is currently conducting some level of remedial activities, including groundwater monitoring at certain sites. (iii) Other MGPs (CenterPoint Energy and CERC). In addition to the Minnesota and Indiana sites, the EPA and other regulators have investigated MGP sites that were owned or operated by CenterPoint Energy or CERC or may have been owned by one of their former affiliates. Total costs that may be incurred in connection with addressing these sites cannot be determined at this time. The estimated accrued costs are limited to CenterPoint Energy’s and CERC’s share of the remediation efforts and are therefore net of exposures of other PRPs. The estimated range of possible remediation costs for the sites for which CenterPoint Energy and CERC believe they may have responsibility was based on remediation continuing for the minimum time frame given in the table below. December 31, 2021 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 16 $ 11 Minimum estimated remediation costs 11 8 Maximum estimated remediation costs 58 36 Minimum years of remediation 5 30 Maximum years of remediation 50 50 The cost estimates are based on studies of a site or industry average costs for remediation of sites of similar size. The actual remediation costs will depend on the number of sites to be remediated, the participation of other PRPs, if any, and the remediation methods used. CenterPoint Energy and CERC do not expect the ultimate outcome of these matters to have a material adverse effect on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC. Asbestos. Some facilities owned by the Registrants or their predecessors contain or have contained asbestos insulation and other asbestos-containing materials. The Registrants are from time to time named, along with numerous others, as defendants in lawsuits filed by a number of individuals who claim injury due to exposure to asbestos, and the Registrants anticipate that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows. CCR Rule (CenterPoint Energy). In April 2015, the EPA finalized its CCR Rule, which regulates ash as non-hazardous material under the RCRA. The final rule allows beneficial reuse of ash, and the majority of the ash generated by Indiana Electric’s generating plants will continue to be reused. In July 2018, the EPA released its final CCR Rule Phase I Reconsideration which extended the deadline to October 31, 2020 for ceasing placement of ash in ponds that exceed groundwater protections standards or that fail to meet location restrictions. In August 2019, the EPA proposed additional “Part A” amendments to its CCR Rule with respect to beneficial reuse of ash and other materials. Further “Part B” amendments, which related to alternate liners for CCR surface impoundments and the surface impoundment closure process, were published in March 2020. The Part A amendments were finalized in August 2020 and extended the deadline to cease placement of ash in ponds to April 11, 2021, discussed further below. The EPA published the final Part B amendments in November 2020. The Part A amendments do not restrict Indiana Electric’s current beneficial reuse of its fly ash. CenterPoint Energy evaluated the Part B amendments to determine potential impacts and determined that the Part B amendments did not have an impact on its current plans. Shortly after taking office in January 2021, President Biden signed an executive order requiring agencies to review environmental actions taken by the Trump administration, including the CCR Rule Phase I Reconsideration, the Part A amendments, and the Part B amendments; the EPA has completed its review of the Phase I Reconsideration, Part A amendments, and Part B amendments and determined that the most environmentally protective course is to implement the rules. Indiana Electric has three ash ponds, two at the F.B. Culley facility (Culley East and Culley West) and one at the A.B. Brown facility. Under the existing CCR Rule, Indiana Electric is required to perform integrity assessments, including ground water monitoring, at its F.B. Culley and A.B. Brown generating stations. The ground water studies are necessary to determine the remaining service life of the ponds and whether a pond must be retrofitted with liners or closed in place. Indiana Electric’s Warrick generating unit is not included in the scope of the CCR Rule as this unit has historically been part of a larger generating station that predominantly serves an adjacent industrial facility. Preliminary groundwater monitoring indicates potential groundwater impacts very close to Indiana Electric’s ash impoundments, and further analysis is ongoing. The CCR Rule required companies to complete location restriction determinations by October 18, 2018. Indiana Electric completed its evaluation and determined that one F.B. Culley pond (Culley East) and the A.B. Brown pond fail the aquifer placement location restriction. As a result of this failure, Indiana Electric was required to cease disposal of new ash in the ponds and commence closure of the ponds by April 11, 2021, unless approved for an extension. CenterPoint Energy has applied for the extensions available under the CCR Rule that would allow Indiana Electric to continue to use the ponds through October 15, 2023. The EPA is still reviewing industry extension requests, including CenterPoint Energy’s extension request. Companies can continue to operate ponds pending completion of the EPA’s evaluation of the requests for extension. If the EPA denies a full extension request, that denial may result in increased and potentially significant operational costs in connection with the accelerated implementation of an alternative ash disposal system or may adversely impact Indiana Electric’s future operations. Failure to comply with a cease waste receipt could also result in an enforcement proceeding, resulting in the imposition of fines and penalties. On April 24, 2019, Indiana Electric received an order from the IURC approving recovery in rates of costs associated with the closure of the Culley West pond, which has already completed closure activities. On August 14, 2019, Indiana Electric filed its petition with the IURC for recovery of costs associated with the closure of the A.B. Brown ash pond, which would include costs associated with the excavation and recycling of ponded ash. This petition was subsequently approved by the IURC on May 13, 2020. On October 28, 2020, the IURC approved Indiana Electric’s ECA proceeding, which included the initiation of recovery of the federally mandated project costs. Indiana Electric continues to refine site specific estimates of closure costs for its ten-acre Culley East pond. In July 2018, Indiana Electric filed a Complaint for Damages and Declaratory Relief against its insurers seeking reimbursement of defense, investigation and pond closure costs incurred to comply with the CCR Rule, and has since reached confidential settlement agreements with its insurers. The proceeds of these settlements will offset costs that have been and will be incurred to close the ponds. As of December 31, 2021, CenterPoint Energy has recorded an approximate $90 million ARO, which represents the discounted value of future cash flow estimates to close the ponds at A.B. Brown and F.B. Culley. This estimate is subject to change due to the contractual arrangements; continued assessments of the ash, closure methods, and the timing of closure; implications of Indiana Electric’s generation transition plan; changing environmental regulations; and proceeds received from the settlements in the aforementioned insurance proceeding. In addition to these removal costs, Indiana Electric also anticipates equipment purchases of between $60 million and $80 million to complete the A.B. Brown closure project. Clean Water Act Permitting of Groundwater Discharges . In April 2021, the U.S. Supreme Court issued an opinion providing that indirect discharges via groundwater or other non-point sources are subject to permitting and liability under the Clean Water Act when they are the functional equivalent of a direct discharge. The Registrants are evaluating the extent to which this decision will affect Clean Water Act permitting requirements and/or liability for their operations. Other Environmental. From time to time, the Registrants identify the presence of environmental contaminants during operations or on property where predecessors have conducted operations. Other such sites involving contaminants may be identified in the future. The Registrants have and expect to continue to remediate any identified sites consistent with state and federal legal obligations. From time to time, the Registrants have received notices, and may receive notices in the future, from regulatory authorities or others regarding status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, the Registrants have been, or may be, named from time to time as defendants in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows. Other Proceedings The Registrants are involved in other legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. From time to time, the Registrants are also defendants in legal proceedings with respect to claims brought by various plaintiffs against broad groups of participants in the energy industry. Some of these proceedings involve substantial amounts. The Registrants regularly analyze current information and, as necessary, provide accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. The Registrants do not expect the disposition of these matters to have a material adverse effect on the Registrants’ financial condition, results of operations or cash flows. |
Earnings Per Share (CenterPoint
Earnings Per Share (CenterPoint Energy) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (CenterPoint Energy) | Earnings Per Share (CenterPoint Energy) The Series C Preferred Stock issued in May 2020 were considered participating securities since these shares participated in dividends on Common Stock on a pari passu, pro rata, as-converted basis. As a result, beginning June 30, 2020, earnings per share on Common Stock was computed using the two-class method required for participating securities during the periods the Series C Preferred Stock was outstanding. As of May 7, 2021, all of the remaining outstanding Series C Preferred Stock were converted into shares of Common Stock and earnings per share on Common Stock and, as such, the two-class method was no longer applicable beginning June 30, 2021. The two-class method uses an earnings allocation formula that treats participating securities as having rights to earnings that otherwise would have been available only to common shareholders. Under the two-class method, income (loss) available to common shareholders from continuing operations is derived by subtracting the following from income (loss) from continuing operations: • preferred share dividend requirement; • deemed dividends for the amortization of the beneficial conversion feature recognized at issuance of the Series C Preferred Stock; and • an allocation of undistributed earnings to preferred shareholders of participating securities (Series C Preferred Stock) based on the securities’ right to receive dividends. Undistributed earnings are calculated by subtracting dividends declared on Common Stock, the preferred share dividend requirement and deemed dividends for the amortization of the beneficial conversion feature from net income. Net losses are not allocated to the Series C Preferred Stock as it does not have a contractual obligation to share in the losses of CenterPoint Energy. The Series C Preferred Stock included conversion features at a price that were below the fair value of the Common Stock on the commitment date. This beneficial conversion feature, which was approximately $32 million, represents the difference between the fair value per share of the Common Stock as of the commitment date and the conversion price, multiplied by the number of common shares issuable upon conversion. The beneficial conversion feature was recognized as a discount to Series C Preferred Stock and was amortized as a deemed dividend over the period from the issue date to the first allowable conversion date, which was November 6, 2020. Basic earnings per common share is computed by dividing income available to common shareholders from continuing operations by the basic weighted average number of common shares outstanding during the period. Participating securities are excluded from basic weighted average number of common shares outstanding. Diluted earnings per common share is computed by dividing income available to common shareholders from continuing operations by the weighted average number of common shares outstanding, including all potentially dilutive common shares, if the effect of such common shares is dilutive. Diluted earnings per share reflects the dilutive effect of potential common shares from share-based awards and convertible preferred shares. The dilutive effect of the restricted stock, Series B Preferred Stock and Series C Preferred Stock is computed using the if-converted method, which assumes conversion of the restricted stock, Series B Preferred Stock and Series C Preferred Stock at the beginning of the period, giving income recognition for the add-back of the preferred share dividends, amortization of beneficial conversion feature, and undistributed earnings allocated to preferred shareholders. The dilutive effect of restricted stock is computed using the treasury stock method, as applicable, which includes the incremental shares that would be hypothetically vested in excess of the number of shares assumed to be hypothetically repurchased with the assumed proceeds. The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Basic earnings per common share is determined by dividing Income available to common shareholders - basic by the Weighted average common shares outstanding - basic for the applicable period. Diluted earnings per common share is determined by the inclusion of potentially dilutive common stock equivalent shares that may occur if securities to issue Common Stock were exercised or converted into Common Stock. For the Year Ended December 31, 2021 2020 2019 (in millions, except per share and share amounts) Numerator: Income from continuing operations $ 668 $ 483 $ 515 Less: Preferred stock dividend requirement (Note 13) 95 144 117 Less: Amortization of beneficial conversion feature (Note 13) — 32 — Less: Undistributed earnings allocated to preferred shareholders (1) — — — Income available to common shareholders from continuing operations - basic and diluted 573 307 398 Income (loss) available to common shareholders from discontinued operations - basic and diluted 818 (1,256) 276 Income (loss) available to common shareholders - basic and diluted $ 1,391 $ (949) $ 674 Denominator: Weighted average common shares outstanding - basic 592,933,000 531,031,000 502,050,000 Plus: Incremental shares from assumed conversions: Restricted stock 5,181,000 — 3,107,000 Series C Preferred Stock (3) 11,824,000 — — Weighted average common shares outstanding - diluted 609,938,000 531,031,000 505,157,000 Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: Restricted stock — 3,690,000 — Series B Preferred Stock (2) 23,906,000 35,922,000 34,354,000 Series C Preferred Stock (3) — 23,807,000 — For the Year Ended December 31, 2021 2020 2019 (in millions, except per share and share amounts) Earnings (loss) per common share: Basic earnings per common share - continuing operations $ 0.97 $ 0.58 $ 0.79 Basic earnings (loss) per common share - discontinued operations 1.38 (2.37) 0.55 Basic Earnings (Loss) Per Common Share $ 2.35 $ (1.79) $ 1.34 Diluted earnings per common share - continuing operations $ 0.94 $ 0.58 $ 0.79 Diluted earnings (loss) per common share - discontinued operations 1.34 (2.37) 0.54 Diluted Earnings (Loss) Per Common Share $ 2.28 $ (1.79) $ 1.33 (1) There were no undistributed earnings to be allocated to participating securities for the years ended December 31, 2021 and 2020. (2) As of December 31, 2021, all of the outstanding Series B Preferred Stock have been converted into Common Stock. For further information, see Note 13. (3) As of December 31, 2021, all of the outstanding Series C Preferred Stock have been converted into Common Stock. For further information, see Note 13. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segments | (18) Reportable Segments The Registrants’ determination of reportable segments considers the strategic operating units under which its CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. Each Registrant’s CODM views net income as the measure of profit or loss for the reportable segments. Certain prior year amounts have been reclassified for assets held for sale and discontinued operations as described below. Additionally, in 2021 CenterPoint Energy transferred certain assets previously recorded in Corporate and Other directly into the reportable segments that received the benefits of such assets, and prior year amounts were reclassified. As of December 31, 2021, reportable segments by Registrant are as follows: CenterPoint Energy • CenterPoint Energy’s Electric reportable segment consisted of electric transmission and distribution services in the Texas gulf coast area and electric transmission and distribution services primarily to southwestern Indiana and includes power generation and wholesale power operations. • CenterPoint Energy’s Natural Gas reportable segment consisted of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. CenterPoint Energy’s Corporate and Other consists of energy performance contracting and sustainable infrastructure services through Energy Systems Group and other corporate operations which support all of the business operations of CenterPoint Energy. Houston Electric • Houston Electric’s single reportable segment consisted of electric transmission services to transmission service customers in the ERCOT region and distribution services to REPs in the Texas gulf coast area. CERC • CERC’s single reportable segment consisted of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas; and (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP. Expenditures for long-lived assets include property, plant and equipment. Intersegment sales are eliminated in consolidation, except as described in Note 2(b). Financial data for reportable segments is as follows, including Corporate and Other and Discontinued Operations for reconciliation purposes: CenterPoint Energy Revenues Depreciation Interest Income (1) Interest Expense Income Tax Expense Net Income (Loss) (in millions) For the year ended December 31, 2021: Electric $ 3,763 $ 756 $ — $ (226) $ 95 $ 475 Natural Gas 4,336 502 1 (141) 80 403 Corporate and Other 253 58 118 (278) (65) (210) Eliminations — — (116) 116 — — Continuing Operations $ 8,352 $ 1,316 $ 3 $ (529) $ 110 668 Discontinued Operations, net 818 Consolidated $ 1,486 For the year ended December 31, 2020: Electric $ 3,470 $ 670 $ 3 $ (220) $ 72 $ 230 Natural Gas 3,631 473 8 (153) 125 278 Corporate and Other 317 46 104 (267) (117) (25) Eliminations — — (111) 111 — — Continuing Operations $ 7,418 $ 1,189 $ 4 $ (529) $ 80 483 Discontinued Operations, net (1,256) Consolidated $ (773) For the year ended December 31, 2019: Electric $ 3,519 $ 746 $ 27 $ (225) $ 96 $ 419 Natural Gas 3,750 439 6 (144) 2 251 Corporate and Other 295 40 134 (343) (68) (155) Eliminations — — (145) 145 — — Continuing Operations $ 7,564 $ 1,225 $ 22 $ (567) $ 30 515 Discontinued Operations, net 276 Consolidated $ 791 (1) Interest income from Securitization Bonds of less than $1 million, $1 million and $5 million for the years ended December 31, 2021, 2020 and 2019, respectively, is included in Other income, net on CenterPoint Energy’s and Houston Electric’s respective Statements of Consolidated Income. Total Assets Expenditures for Long-lived Assets December 31, December 31, 2021 2020 2021 2020 2019 (in millions) Electric $ 16,439 $ 14,516 $ 2,008 $ 1,281 $ 1,216 Natural Gas 16,153 15,041 1,178 1,139 1,098 Corporate and Other, net of eliminations (1) 2,749 3,132 42 95 194 Continuing Operations 35,341 32,689 3,228 2,515 2,508 Assets Held for Sale/Discontinued Operations 2,338 782 171 21 79 Consolidated $ 37,679 $ 33,471 $ 3,399 $ 2,536 $ 2,587 (1) Total assets included pension and other postemployment-related regulatory assets of $427 million and $540 million as of December 31, 2021 and 2020, respectively. Assets Held for Sale and Discontinued Operations (CenterPoint Energy and CERC) CenterPoint Energy’s Midstream Investments reportable segment presented in the Registrants’ combined 2020 Form 10-K consisted of the equity investment in Enable (excluding the Enable Series A Preferred Units). In September 2021, CenterPoint Energy’s equity investment in Enable met the held for sale criteria and is reflected as discontinued operations, and as a result this reportable segment is not reflected in the financial data for reportable segments. See Notes 4 and 11 for further information regarding CenterPoint Energy’s equity investment in Enable as held for sale and discontinued operations and the completed Enable Merger. On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group, which consisted of underground pipeline construction and repair services. Accordingly, the previously reported Infrastructure Services reportable segment has been eliminated. The transaction closed on April 9, 2020. See Note 4 for further information. Additionally, on February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group, which consisted of non-rate regulated natural gas sales and service operations. Accordingly, the previously reported Energy Services reportable segment has been eliminated. The transaction closed on June 1, 2020. See Note 4 for further information. On April 29, 2021, CenterPoint Energy, through its subsidiary CERC Corp., entered into an Asset Purchase Agreement to sell its Arkansas and Oklahoma Natural Gas businesses. The Arkansas and Oklahoma Natural Gas businesses are reflected in CenterPoint Energy’s Natural Gas reportable segment and CERC’s single reportable segment, as applicable, and are classified as held for sale as of December 31, 2021. On January 10, 2022, CERC Corp. completed the sale of its Arkansas and Oklahoma Natural Gas businesses. See Note 4 for further information. On August 31, 2021, CenterPoint Energy, through its subsidiary CERC Corp., completed the sale of MES to Last Mile Energy. See Note 4 for further information. Houston Electric Houston Electric consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been included. CERC CERC consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been included. Major Customers (CenterPoint Energy and Houston Electric) Houston Electric’s revenues from major external customers are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Affiliates of NRG $ 905 $ 749 $ 727 Affiliates of Vistra Energy Corp. 410 404 263 Revenues by Products and Services Year Ended December 31, 2021 2020 2019 Revenues by Products and Services: CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Electric delivery $ 3,158 $ 3,134 $ — $ 2,941 $ 2,911 $ — $ 3,019 $ 2,990 $ — Retail electric sales 559 — — 515 — — 486 — — Wholesale electric sales 46 — — 14 — — 14 — — Retail gas sales 4,157 — 3,069 3,462 — 2,594 3,563 — 2,831 Gas transportation and processing 12 — 12 15 — 15 33 — 33 Energy products and services 420 — 167 471 — 154 449 — 154 Total $ 8,352 $ 3,134 $ 3,248 $ 7,418 $ 2,911 $ 2,763 $ 7,564 $ 2,990 $ 3,018 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | (19) Supplemental Disclosure of Cash Flow Information CenterPoint Energy and CERC elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. The table below provides supplemental disclosure of cash flow information and does not exclude the Infrastructure Services and Energy Services Disposal Groups prior to the closing of the respective transactions. The tables below provide supplemental disclosure of cash flow information: 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 489 $ 208 $ 99 $ 471 $ 201 $ 114 $ 436 $ 229 $ 109 Income tax payments (refunds), net (46) 20 4 143 65 4 155 87 7 Non-cash transactions: Accounts payable related to capital expenditures 370 261 103 153 102 69 236 117 86 Fair Value of Energy Transfer Common Units received for Enable Merger 1,672 — — — — — — — — Fair Value of Energy Transfer Series G Preferred Units received for Enable Merger 385 — — — — — — — — ROU assets obtained in exchange for lease liabilities (1) 2 — — 15 1 5 44 1 29 Beneficial conversion feature — — — 32 — — — — — Amortization of beneficial conversion feature — — — (32) — — — — — Capital distribution associated with the Internal Spin (2) — — — — — — — — 28 (1) Includes the transition impact of adoption of ASU 2016-02 Leases as of January 1, 2019. The Registrants elected not to recast comparative periods in the year of adoption as permitted by the standard. (2) The capital distribution in 2019 is the result of the finalization of the previously estimated net deferred tax assets and liabilities distributed as part of the Internal Spin. The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the amount reported in the Statements of Consolidated Cash Flows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents (1) $ 230 $ 214 $ 8 $ 147 $ 139 $ 1 Restricted cash included in Prepaid expenses and other current assets 24 19 — 20 15 — Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows $ 254 $ 233 $ 8 $ 167 $ 154 $ 1 |
Related Party Transactions (Hou
Related Party Transactions (Houston Electric and CERC) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions (Houston Electric and CERC) | Related Party Transactions (Houston Electric and CERC) Houston Electric and CERC participate in a money pool through which they can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper. The table below summarizes money pool activity: December 31, 2021 December 31, 2020 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ (512) $ (224) $ (8) $ — Weighted average interest rate 0.34 % 0.34 % 0.24 % 0.24 % (1) Included in Accounts and notes receivable (payable)–affiliated companies in Houston Electric’s and CERC’s Consolidated Balance Sheets. Houston Electric and CERC affiliate-related net interest income (expense) were as follows: Year Ended December 31, 2021 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Interest income (expense), net (1) $ — $ — $ — $ — $ 18 $ 4 (1) Interest income is included in Other, net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Statements of Consolidated Income. CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include negotiated usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides certain services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates. The Infrastructure Services Disposal Group provided pipeline construction and repair services to CERC’s Natural Gas. Additionally, CERC, through the Energy Services Disposal Group, sold natural gas to Indiana Electric for use in electric generation activities. These transactions are now included in discontinued operations and are excluded from the disclosures below. See Note 4 for further information. Amounts charged for these services are included primarily in Operation and maintenance expenses: Year Ended December 31, 2021 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 189 $ 216 $ 197 $ 212 $ 177 $ 141 Net affiliate service charges (billings) (7) 7 (16) 16 (8) 8 The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding. Year Ended December 31, 2021 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ — $ — $ 551 $ 80 $ 376 $ 120 Cash contribution from parent 130 180 62 217 590 129 Capital distribution to parent associated with the sale of CES — — — 286 — — Capital distribution to parent associated with the Internal Spin (1) — — — — — 28 Property, plant and equipment from parent (2) — — 36 23 — — (1) The capital distribution in 2019 associated with the Internal Spin is a result of the return to accrual for the periods of CERC’s ownership during 2018. (2) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases An arrangement is determined to be a lease at inception based on whether the Registrant has the right to control the use of an identified asset. ROU assets represent the Registrants’ right to use the underlying asset for the lease term and lease liabilities represent the Registrants’ obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Registrants are the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. Each Registrant uses the implicit rate for agreements in which it is a lessor. Lease income and expense for operating leases and ROU amortization for finance leases are recognized on a straight-line basis over the lease term. The Registrants have lease agreements with lease and non-lease components and have elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings and mobile generators. For classes of leases in which lease and non-lease components are not combined, consideration is allocated between components based on the stand-alone prices. Sublease income is not significant to the Registrants. The Registrants’ lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. There are no material lease transactions with related parties. Agreements in which the Registrants are lessors do not include provisions for the lessee to purchase the assets. Because risk is minimal, the Registrants do not take any significant actions to manage risk associated with the residual value of their leased assets. The Registrants’ operating lease agreements are primarily equipment and real property leases, including land and office facility leases. CenterPoint Energy and Houston Electric also have finance lease agreements for mobile generators. The Registrants’ lease terms may include options to extend or terminate a lease when it is reasonably certain that those options will be exercised. The Registrants have elected an accounting policy that exempts leases with terms of one year or less from the recognition requirements of ASC 842. In 2021 Houston Electric entered into two lease agreements for mobile generation: (1) a temporary short-term lease and (2) a long-term lease. The short-term lease agreement allows Houston Electric to take delivery of mobile generation assets on a short-term basis with a term ending in the third quarter of 2022. Per Houston Electric’s short term lease accounting policy election, a ROU asset and lease liability are not reflected on Houston Electric’s Consolidated Balance Sheets. Expenses associated with the short-term lease, including carrying costs, are deferred to a regulatory asset and totaled $20 million as of December 31, 2021. The long-term lease agreement includes up to 505 MW of mobile generation of which 125 MW was delivered by December 31, 2021, triggering lease commencement at delivery, and has an initial term ending in 2029. Houston Electric derecognized the finance lease liability when the extinguishment criteria in Topic 405 - Liabilities were achieved. Per the terms of the agreement, lease payments are due and made in full by Houston Electric upon taking possession of the asset, relieving substantially all of the associated finance lease liability as of December 31, 2021. The remaining finance lease liability associated with the commenced long-term mobile generation agreement was not significant as of December 31, 2021 and relates to removal costs that will be incurred at the end of the lease term. The lease agreement provides Houston Electric a right to terminate between October 2022 and March 2023 if a regulatory event or ruling creates a material adverse condition, which is not reasonably certain to occur. If the right to terminate is elected, seventy-five percent (75%) of Houston Electric’s prorated prepaid lease costs would be refunded. Houston Electric made payments under the long-term lease agreement for the 125 MW of mobile generation that was delivered during 2021 into an escrow account, not controlled by Houston Electric, and the funds will be released when the lessor provides Houston Electric with the required information to secure a first lien on the generation equipment. Houston Electric will also incur variable costs throughout the lease term for the operation and maintenance of the generators. Lease costs, including variable and ROU asset amortization costs, are deferred to Regulatory assets as incurred as a recoverable cost under the 2021 Texas legislation. Houston Electric intends to seek recovery in its DCRF of deferred costs, lease payments, and applicable return, which approximate $200 million under the mobile generation agreements in 2021. The components of lease cost, included in Operation and maintenance expense on the Registrants’ respective Statements of Consolidated Income, are as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 8 $ 1 $ 4 $ 9 $ — $ 5 Short-term lease cost 119 118 — 14 12 — Total lease cost (1) $ 127 $ 119 $ 4 $ 23 $ 12 $ 5 (1) CenterPoint Energy and Houston Electric defer finance lease costs for mobile generation to Regulatory assets for recovery rather than to Depreciation and Amortization in the Statements of Consolidated Income. The components of lease income were as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 6 $ 1 $ 3 $ 5 $ — $ 2 Variable lease income 1 — — 1 — — Total lease income $ 7 $ 1 $ 3 $ 6 $ — $ 2 Supplemental balance sheet information related to leases was as follows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions, except lease term and discount rate) Assets: Operating ROU assets (1) $ 22 $ 1 $ 12 $ 31 $ 1 $ 19 Finance ROU assets (2) 179 179 — — — — Total leased assets $ 201 $ 180 $ 12 $ 31 $ 1 $ 19 Liabilities: Current operating lease liability (3) $ 6 $ 1 $ 2 $ 6 $ — $ 3 Non-current operating lease liability (4) 17 — 11 26 1 18 Total leased liabilities (5) $ 23 $ 1 $ 13 $ 32 $ 1 $ 21 Weighted-average remaining lease term (in years) - operating leases 6.2 4.1 6.5 6.0 4.0 7.5 Weighted-average discount rate - operating leases 3.10 % 2.86 % 3.20 % 3.14 % 2.59 % 3.36 % Weighted-average remaining lease term (in years) - finance leases 7.5 7.5 — — — — Weighted-average discount rate - finance leases 2.21 % 2.21 % — — — — (1) Reported within Other assets (2) Reported within Property, Plant and Equipment (3) Reported within Current other liabilities (4) Reported within Other liabilities (5) Finance lease liabilities were not material as of December 31, 2021 or 2020 and are reported within Other long-term debt in the Registrants’ respective Consolidated Balance Sheets when applicable. As of December 31, 2021, finance lease liabilities were not significant to the Registrants. As of December 31, 2021, maturities of operating lease liabilities were as follows: CenterPoint Houston CERC (in millions) 2022 $ 6 $ 1 $ 3 2023 5 — 2 2024 3 — 2 2025 3 — 2 2026 3 — 2 2027 and beyond 5 — 3 Total lease payments 25 1 14 Less: Interest 2 — 1 Present value of lease liabilities $ 23 $ 1 $ 13 As of December 31, 2021, future minimum finance lease payments were not significant to the Registrants, exclusive of approximately $496 million of legally-binding undiscounted minimum lease payments for finance leases for approximately 380 MW of mobile generation leases signed but not yet commenced. As of December 31, 2021, maturities of undiscounted operating lease payments to be received are as follows: CenterPoint Houston CERC (in millions) 2022 $ 5 $ — $ 3 2023 5 — 3 2024 5 — 3 2025 6 — 3 2026 6 — 4 2027 and beyond 142 — 136 Total lease payments to be received $ 169 $ — $ 152 Other information related to leases is as follows: Year Ended December 31, 2021 CenterPoint Houston CERC (in millions) Operating cash flows from operating leases included in the measurement of lease liabilities $ 6 $ 1 $ 3 Financing cash flows from finance leases included in the measurement of lease liabilities 179 179 — See Note 19 for information on ROU assets obtained in exchange for operating lease liabilities. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Completion of Sale of Arkansas and Oklahoma Natural Gas businesses (CenterPoint Energy and CERC) On January 10, 2022, CERC Corp. completed the sale of its Arkansas and Oklahoma Natural Gas businesses. For additional information, see Note 4. CERC Dividend On February 11, 2022, CERC paid a dividend of $720 million to its parent, Utility Holding. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The accounts of the Registrants and their wholly-owned and majority-owned and controlled subsidiaries are included in the consolidated financial statements. All intercompany transactions and balances are eliminated in consolidation, except as described below. Businesses within the Infrastructure Services Disposal Group provided underground pipeline construction and repair services for customers that included Natural Gas utilities. In accordance with consolidation guidance in ASC 980—Regulated Operations, costs incurred by Natural Gas utilities for these pipeline construction and repair services were not eliminated in consolidation when capitalized and included in rate base by the Natural Gas utility. On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group. The transaction closed on April 9, 2020. For further information, see Note 4. |
Equity Method and Investments Without a Readily Determinable Fair Value (CenterPoint Energy) | Equity Method and Investments without a Readily Determinable Fair Value (CenterPoint Energy) CenterPoint Energy uses the equity method for investments in entities when it exercises significant influence, does not have control and is not considered the primary beneficiary, if applicable. Generally, equity investments in limited partnerships with interest greater than approximately 3-5% is accounted for under the equity method. Under the equity method, CenterPoint Energy adjusts its investments each period for contributions made, distributions received, respective shares of comprehensive income and amortization of basis differences, as appropriate. CenterPoint Energy evaluates its equity method investments for impairment when events or changes in circumstances indicate there is a loss in value of the investment that is other than a temporary decline. CenterPoint Energy considers distributions received from equity method investments which do not exceed cumulative equity in earnings subsequent to the date of investment to be a return on investment and classifies these distributions as operating activities in its Statements of Consolidated Cash Flows. CenterPoint Energy considers distributions received from equity method investments in excess of cumulative equity in earnings subsequent to the date of investment to be a return of investment and classifies these distributions as investing activities in its Statements of Consolidated Cash Flows. Investments without a readily determinable fair value will be measured at cost, less impairment, plus or minus observable prices changes of an identical or similar investment of the same issuer. |
Revenues | RevenuesThe Registrants record revenue for electricity delivery and natural gas sales and services under the accrual method and these revenues are recognized upon delivery to customers. Electricity deliveries not billed by month-end are accrued based on actual AMS/AMI data, supply volumes, estimated line loss and applicable tariff rates. Natural gas sales not billed by month-end are accrued based upon estimated purchased gas volumes, estimated lost and unaccounted for gas and currently effective tariff rates. For further discussion, see Note 5. |
MISO Transactions | MISO TransactionsIndiana Electric is a member of the MISO. MISO-related purchase and sale transactions are recorded using settlement information provided by the MISO. These purchase and sale transactions are accounted for on at least a net hourly position, meaning net purchases within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility natural gas, fuel and purchased power, and net sales within that interval are recorded on CenterPoint Energy’s Statements of Consolidated Income in Utility revenues. On occasion, prior period transactions are resettled outside the routine process due to a change in the MISO’s tariff or a material interpretation thereof. Expenses associated with resettlements are recorded once the resettlement is probable and the resettlement amount can be estimated. Revenues associated with resettlements are recognized when the amount is determinable and collectability is reasonably assured. |
Guarantees | GuaranteesCenterPoint Energy recognizes guarantee obligations at fair value. CenterPoint Energy discloses parent company guarantees of a subsidiary’s obligation when that guarantee results in the exposure of a material obligation of the parent company even if the probability of fulfilling such obligation is considered remote. See Note 16(c) and (d). |
Long-lived Assets, Goodwill and Intangibles | Long-lived Assets, Goodwill and Intangibles The Registrants record property, plant and equipment at historical cost and expense repair and maintenance costs as incurred. The Registrants periodically evaluate long-lived assets, including property, plant and equipment, and specifically identifiable intangibles subject to amortization, when events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. For rate regulated businesses, recoverability of long-lived assets is assessed by determining if a capital disallowance from a regulator is probable through monitoring the outcome of rate cases and other proceedings. For non-rate regulated businesses, recoverability is assessed based on an estimate of undiscounted cash flows attributable to the assets compared to the carrying value of the assets. No long-lived asset or intangible asset impairments were recorded in 2021, 2020 or 2019. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued OperationsGenerally, a long-lived asset to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, as applicable, commits to a plan to sell and a sale is expected to be completed within one year. The Registrants record assets and liabilities held for sale at the lower of their carrying value or their estimated fair value less cost to sell. If the disposal group reflects a component of a reporting unit and meets the definition of a business, the goodwill within that reporting unit is allocated to the disposal group based on the relative fair value of the components representing a business that will be retained and disposed. Goodwill is not allocated to a portion of a reporting unit that does not meet the definition of a business. A disposal group that meets the held for sale criteria and also represents a strategic shift to the Registrant, is also reflected as discontinued operations on the Statements of Consolidated Income, and prior periods are recast to reflect the earnings or losses from such businesses as income from discontinued operations, net of tax. |
Regulatory Assets and Liabilities | Regulatory Assets and LiabilitiesThe Registrants apply the guidance for accounting for regulated operations within the Electric reportable segment and the Natural Gas reportable segment. The Registrants’ rate-regulated subsidiaries may collect revenues subject to refund pending final determination in rate proceedings. In connection with such revenues, estimated rate refund liabilities are recorded which reflect management’s current judgment of the ultimate outcomes of the proceedings. The Registrants’ rate-regulated businesses recognize removal costs as a component of depreciation expense in accordance with regulatory treatment. In addition, a portion of the amount of removal costs collected from customers that relate to AROs has been reflected as an asset retirement liability in accordance with accounting guidance for AROs. |
Depreciation and Amortization Expense | Depreciation and Amortization ExpenseThe Registrants compute depreciation and amortization using the straight-line method based on economic lives or regulatory-mandated recovery periods. Amortization expense includes amortization of certain regulatory assets and other intangibles. |
Capitalization of Interest and AFUDC | Capitalization of Interest and AFUDC The Registrants capitalize interest and AFUDC as a component of projects under construction and amortize it over the assets’ estimated useful lives once the assets are placed in service. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. Although AFUDC increases both utility plant and earnings, it is realized in cash when the assets are included in rates. Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Interest and AFUDC debt (1) $ 34 $ 13 $ 2 $ 27 $ 8 $ 3 $ 36 $ 8 $ 3 AFUDC equity (2) 28 20 3 25 14 3 22 15 3 (1) Included in Interest and other finance charges on the Registrants’ respective Statements of Consolidated Income, inclusive of $16 million, $13 million and $21 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2021, 2020 and 2019, respectively. (2) Included in Other Income (Expense) on the Registrants’ respective Statements of Consolidated Income. |
Income Taxes | Income Taxes Houston Electric and CERC are included in CenterPoint Energy’s U.S. federal consolidated income tax return. Houston Electric and CERC report their income tax provision on a separate entity basis pursuant to a tax sharing agreement with CenterPoint Energy. Current federal and certain state income taxes are payable to or receivable from CenterPoint Energy. The Registrants use the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. A valuation allowance is established against deferred tax assets for which management believes realization is not considered to be more likely than not. The Registrants recognize interest and penalties as a component of income tax expense (benefit), as applicable, in their respective Statements of Consolidated Income. CenterPoint Energy reports the income tax provision associated with its interest in Enable in income tax expense (benefit) in its Statements of Consolidated Income. To the extent certain EDIT of the Registrants’ rate-regulated subsidiaries may be recoverable or payable through future rates, regulatory assets and liabilities have been recorded, respectively. See Note 15 for further discussion. The Registrants use the portfolio approach to recognize income tax effects on other comprehensive income from accumulated other comprehensive income. Investment tax credits are deferred and amortized to income over the approximate lives of the related property. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit LossesAccounts receivable are recorded at the invoiced amount and do not bear interest. Management reviews historical write-offs, current available information, and reasonable and supportable forecasts to estimate and establish allowance for credit losses. Account balances are charged off against the allowance when management determines it is probable the receivable will not be recovered. See Note 7 for further information about regulatory deferrals of bad debt expense related to COVID-19. |
Inventory | Inventory The Registrants’ inventory consists principally of materials and supplies, and for CERC, natural gas, and for CenterPoint Energy, coal inventory. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Certain natural gas in storage at CenterPoint Energy’s and CERC’s utilities are recorded using the LIFO method. CenterPoint Energy’s and CERC’s balances in inventory that were valued using LIFO method were as follows: Year Ended December 31, 2021 (1) 2020 2021 (1) 2020 (1) CenterPoint Energy CERC (in millions) LIFO inventory $ 101 $ 92 $ 56 $ 55 (1) Based on the average cost of gas purchased during December 2021, CenterPoint Energy’s and CERC’s cost of replacing inventories carried at LIFO cost was less than the carrying value at December 31, 2021 by $48 million and $-0-, respectively. |
Derivative Instruments | Derivative InstrumentsThe Registrants are exposed to various market risks. These risks arise from transactions entered into in the normal course of business. The Registrants, from time to time, utilize derivative instruments such as physical forward contracts, swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on operating results and cash flows. Such derivatives are recognized in the Registrants’ Consolidated Balance Sheets at their fair value unless the Registrant elects the normal purchase and sales exemption for qualified physical transactions. A derivative may be designated as a normal purchase or normal sale if the intent is to physically receive or deliver the product for use or sale in the normal course of business. CenterPoint Energy elected to record changes in the fair value of amounts excluded from the assessment of effectiveness immediately in its Statements of Consolidated Income. |
Investments in Equity Securities (CenterPoint Energy) | Investments in Equity Securities (CenterPoint Energy)CenterPoint Energy reports equity securities at estimated fair value in the Consolidated Balance Sheets, and any gains and losses, net of any transaction costs, are recorded as Gain (Loss) on Equity Securities in the Statements of Consolidated Income. |
Environmental Costs | Environmental CostsThe Registrants expense or capitalize environmental expenditures, as appropriate, depending on their future economic benefit. The Registrants expense amounts that relate to an existing condition caused by past operations that do not have future economic benefit. The Registrants record undiscounted liabilities related to these future costs when environmental assessments and/or remediation activities are probable and the costs can be reasonably estimated. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash For purposes of reporting cash flows, the Registrants consider cash equivalents to be short-term, highly-liquid investments with maturities of three months or less from the date of purchase. Cash and cash equivalents held by the Bond Companies (VIEs) solely to support servicing the Securitization Bonds as of December 31, 2021 and 2020 are reflected on CenterPoint Energy’s and Houston Electric’s Consolidated Balance Sheets. In connection with the issuance of Securitization Bonds, CenterPoint Energy and Houston Electric were required to establish restricted cash accounts to collateralize the bonds that were issued in these financing transactions. These restricted |
Preferred Stock Dividends | Preferred Stock and Dividends Preferred stock is evaluated to determine balance sheet classification, and all conversion and redemption features are evaluated for bifurcation treatment. Proceeds received net of issuance costs are recognized on the settlement date. Cash dividends become a liability once declared. Income available to common stockholders is computed by deducting from net income the dividends accumulated and earned during the period on cumulative preferred stock. |
Purchase Accounting | Purchase AccountingThe Registrants evaluate acquisitions to determine when a set of acquired activities and assets represent a business. When control of a business is obtained, the Registrants apply the acquisition method of accounting and record the assets acquired, liabilities assumed and any non-controlling interest obtained based on fair value at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the net assets acquired is recorded as goodwill. The results of operations of the acquired business are included in the Registrants’ respective Statements of Consolidated Income beginning on the date of the acquisition. |
New Accounting Pronouncements | New Accounting PronouncementsManagement believes that other recently adopted and recently issued accounting standards that are not yet effective will not have a material impact on the Registrants’ financial position, results of operations or cash flows upon adoption. |
Leases | An arrangement is determined to be a lease at inception based on whether the Registrant has the right to control the use of an identified asset. ROU assets represent the Registrants’ right to use the underlying asset for the lease term and lease liabilities represent the Registrants’ obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Registrants are the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. Each Registrant uses the implicit rate for agreements in which it is a lessor. Lease income and expense for operating leases and ROU amortization for finance leases are recognized on a straight-line basis over the lease term. The Registrants have lease agreements with lease and non-lease components and have elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings and mobile generators. For classes of leases in which lease and non-lease components are not combined, consideration is allocated between components based on the stand-alone prices. Sublease income is not significant to the Registrants. The Registrants’ lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. There are no material lease transactions with related parties. Agreements in which the Registrants are lessors do not include provisions for the lessee to purchase the assets. Because risk is minimal, the Registrants do not take any significant actions to manage risk associated with the residual value of their leased assets. The Registrants’ operating lease agreements are primarily equipment and real property leases, including land and office facility leases. CenterPoint Energy and Houston Electric also have finance lease agreements for mobile generators. The Registrants’ lease terms may include options to extend or terminate a lease when it is reasonably certain that those options will |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Public Utilities General Disclosures | The Registrants capitalize interest and AFUDC as a component of projects under construction and amortize it over the assets’ estimated useful lives once the assets are placed in service. AFUDC represents the composite interest cost of borrowed funds and a reasonable return on the equity funds used for construction for subsidiaries that apply the guidance for accounting for regulated operations. Although AFUDC increases both utility plant and earnings, it is realized in cash when the assets are included in rates. Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Interest and AFUDC debt (1) $ 34 $ 13 $ 2 $ 27 $ 8 $ 3 $ 36 $ 8 $ 3 AFUDC equity (2) 28 20 3 25 14 3 22 15 3 (1) Included in Interest and other finance charges on the Registrants’ respective Statements of Consolidated Income, inclusive of $16 million, $13 million and $21 million of debt post in-service carrying costs on property, plant and equipment, primarily in Indiana, deferred into a regulatory asset in the years ended December 31, 2021, 2020 and 2019, respectively. (2) Included in Other Income (Expense) on the Registrants’ respective Statements of Consolidated Income. |
LIFO Inventory | The Registrants’ inventory consists principally of materials and supplies, and for CERC, natural gas, and for CenterPoint Energy, coal inventory. Materials and supplies are valued at the lower of average cost or market. Materials and supplies are recorded to inventory when purchased and subsequently charged to expense or capitalized to plant when installed. Certain natural gas in storage at CenterPoint Energy’s and CERC’s utilities are recorded using the LIFO method. CenterPoint Energy’s and CERC’s balances in inventory that were valued using LIFO method were as follows: Year Ended December 31, 2021 (1) 2020 2021 (1) 2020 (1) CenterPoint Energy CERC (in millions) LIFO inventory $ 101 $ 92 $ 56 $ 55 (1) Based on the average cost of gas purchased during December 2021, CenterPoint Energy’s and CERC’s cost of replacing inventories carried at LIFO cost was less than the carrying value at December 31, 2021 by $48 million and $-0-, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment includes the following: December 31, 2021 December 31, 2020 Weighted Average Useful Lives Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net Property, Plant and Equipment, Gross Accumulated Depreciation & Amortization Property, Plant and Equipment, Net (in years) (in millions) CenterPoint Energy Electric transmission and distribution 36 $ 17,156 $ 4,658 $ 12,498 $ 15,225 $ 4,785 $ 10,440 Electric generation (1) 26 1,807 1,179 628 1,922 754 1,168 Natural gas distribution 30 13,578 3,981 9,597 14,022 4,019 10,003 Finance ROU asset mobile generation 7.5 179 — 179 — — — Other property 16 953 371 582 1,345 594 751 Total $ 33,673 $ 10,189 $ 23,484 $ 32,514 $ 10,152 $ 22,362 Houston Electric Electric transmission and distribution 38 $ 13,321 $ 3,502 $ 9,819 $ 11,911 $ 3,396 $ 8,515 Finance ROU asset mobile generation 7.5 179 — 179 — — — Other property 19 1,773 568 1,205 1,682 534 1,148 Total $ 15,273 $ 4,070 $ 11,203 $ 13,593 $ 3,930 $ 9,663 CERC Natural gas distribution 29 $ 7,833 $ 2,093 $ 5,740 $ 8,928 $ 2,392 $ 6,536 Other property 19 45 22 23 44 22 22 Total $ 7,878 $ 2,115 $ 5,763 $ 8,972 $ 2,414 $ 6,558 (1) SIGECO and AGC own a 300 MW unit at the Warrick Power Plant (Warrick Unit 4) as tenants in common. SIGECO’s share of the cost of this unit as of December 31, 2021, is $196 million with accumulated depreciation totaling $154 million. AGC and SIGECO share equally in the cost of operation and output of the unit. SIGECO’s share |
Depreciation and Amortization | The following table presents depreciation and amortization expense for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Depreciation $ 1,024 $ 391 $ 311 $ 961 $ 368 $ 289 $ 879 $ 339 $ 277 Amortization of securitized regulatory assets 213 213 — 155 155 — 271 271 — Other amortization 79 38 15 73 37 15 75 38 16 Total $ 1,316 $ 642 $ 326 $ 1,189 $ 560 $ 304 $ 1,225 $ 648 $ 293 |
Asset Retirement Obligation | A reconciliation of the changes in the ARO liability recorded in Other non-current liabilities on each of the Registrants’ respective Consolidated Balance Sheets is as follows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning balance $ 787 $ 43 $ 571 $ 539 $ 42 $ 325 Accretion expense (1) 21 1 12 16 1 11 Revisions in estimates (2) (67) (2) (93) 232 — 235 Ending balance $ 741 $ 42 $ 490 $ 787 $ 43 $ 571 (1) Reflected in Regulatory assets on each of the Registrants’ respective Consolidated Balance Sheets. |
Held for Sale, Divestitures a_2
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale | The assets and liabilities of the Arkansas and Oklahoma Natural Gas businesses and equity method investment in Enable classified as held for sale in CenterPoint Energy’s and CERC’s Consolidated Balance Sheets, as applicable, included the following: December 31, 2021 CenterPoint Energy CERC (in millions) Receivables, net $ 46 $ 46 Accrued unbilled revenues 48 48 Natural gas inventory 46 46 Materials and supplies 9 9 Property, plant and equipment, net 1,314 1,314 Goodwill 398 144 Investment in unconsolidated affiliate (1) — — Regulatory assets 471 471 Other 6 6 Total current assets held for sale $ 2,338 $ 2,084 December 31, 2021 CenterPoint Energy CERC (in millions) Short term borrowings (2) $ 36 $ 36 Accounts payable 40 40 Taxes accrued 7 7 Customer deposits 12 12 Regulatory liabilities 365 365 Other 102 102 Total current liabilities held for sale $ 562 $ 562 (1) Balance of $782 million as of December 31, 2020 is reported as Non-current assets held for sale on CenterPoint Energy’s Consolidated Balance Sheets. (2) Represents third-party AMAs associated with utility distribution service in Arkansas and Oklahoma. These transactions are accounted for as an inventory financing. For further information, see Notes 14 and 16. The pre-tax income for the Arkansas and Oklahoma Natural Gas businesses, excluding interest and corporate allocations, included in CenterPoint Energy’s and CERC’s Statements of Consolidated Income is as follows: Year Ended December 31, 2021 2020 (in millions) Income from Continuing Operations Before Income Taxes $ 78 $ 73 |
Disposal Groups, Including Discontinued Operations | A summary of discontinued operations presented in CenterPoint Energy’s Statements of Consolidated Income is as follows: Year Ended December 31, 2021 Equity Method Investment in Enable (in millions) Equity in earnings of unconsolidated affiliate, net $ 1,019 Income from discontinued operations before income taxes 1,019 Income tax expense 201 Net income from discontinued operations $ 818 Year Ended December 31, 2020 Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group Total (in millions) Revenues $ — $ 250 $ 1,167 $ 1,417 Expenses: Non-utility cost of revenues — 50 1,108 1,158 Operation and maintenance — 184 34 218 Taxes other than income taxes — 1 3 4 Total — 235 1,145 1,380 Operating income — 15 22 37 Equity in losses of unconsolidated affiliate, net (1) (1,428) — — (1,428) Income (loss) from Discontinued Operations before income taxes (1,428) 15 22 (1,391) Loss on classification to held for sale, net (2) — (102) (96) (198) Income tax expense (benefit) (354) 24 (3) (333) Net loss from Discontinued Operations $ (1,074) $ (111) $ (71) $ (1,256) Year Ended December 31, 2019 Equity Method Investment in Enable Infrastructure Services Disposal Group (3) Energy Services Disposal Group Total (in millions) Revenues $ — $ 1,190 $ 3,767 $ 4,957 Expenses: Non-utility cost of revenues — 309 3,597 3,906 Operation and maintenance — 714 68 782 Depreciation and amortization — 50 12 62 Taxes other than income taxes — 2 2 4 Goodwill Impairment — — 48 48 Total — 1,075 3,727 4,802 Operating income — 115 40 155 Equity in earnings of unconsolidated affiliate, net (4) 229 — — 229 Income from Discontinued Operations before income taxes 229 115 40 384 Income tax expense 62 29 17 108 Net income from Discontinued Operations $ 167 $ 86 $ 23 $ 276 (1) CenterPoint Energy recognized a loss of $1,428 million from its investment in Enable for the year ended December 31, 2020. This loss included an impairment charge on CenterPoint Energy’s investment in Enable of $1,541 million and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment. (2) Loss from classification to held for sale is inclusive of goodwill impairments, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. (3) Reflects February 1, 2019 to December 31, 2019 results only due to the Merger. (4) Includes CenterPoint Energy’s share of Enable’s $86 million goodwill impairment recorded in the fourth quarter of 2019. A summary of the Energy Services Disposal Group presented as discontinued operations in CERC’s Statements of Consolidated Income, as applicable, is as follows: Year Ended December 31, 2020 2019 CERC (in millions) Revenues $ 1,167 $ 3,767 Expenses: Non-utility cost of revenues 1,108 3,597 Operation and maintenance 34 68 Depreciation and amortization — 12 Taxes other than income taxes 3 2 Goodwill Impairment — 48 Total 1,145 3,727 Income from Discontinued Operations before income taxes 22 40 Loss on classification to held for sale, net (1) (90) — Income tax expense (benefit) (2) 17 Net income (loss) from Discontinued Operations $ (66) $ 23 (1) Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. Year Ended December 31, 2020 (1) 2019 2020 (1) 2019 CenterPoint Energy CERC (in millions) Transportation revenue $ 34 $ 101 $ 34 $ 101 Natural gas expense 48 125 47 124 Fees incurred by CenterPoint Energy’s and CERC’s Natural Gas reportable segment for pipeline construction and repair services are as follows: Year Ended December 31, 2020 (1) 2019 (2) 2020 2019 CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ 34 $ 162 $ — $ 20 Pipeline construction and repair service charges in operations and maintenance expense 1 4 1 4 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group. (2) Represents charges for the period beginning February 1, 2019 through December 31, 2019 due to the Merger. |
Disposal Groups, Including Discontinued Operations Cash Flow | The following table summarizes CenterPoint Energy’s and CERC’s cash flows from discontinued operations and certain supplemental cash flow disclosures as applicable: Year Ended December 31, 2021 CenterPoint Energy Equity Method Investment in Enable (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Gain on Enable Merger $ (681) Equity in earnings of unconsolidated affiliate (339) Distributions from unconsolidated affiliate 155 Cash flows from investing activities: Transaction costs related to the Enable Merger (49) Cash received related to Enable Merger 5 Year Ended December 31, 2020 CenterPoint Energy Equity Method Investment in Enable Infrastructure Services Disposal Group Energy Services Disposal Group (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Write-down of natural gas inventory $ — $ — $ 3 Equity in losses of unconsolidated affiliate 1,428 — — Distributions from unconsolidated affiliate 113 — — Cash flows from investing activities: Capital expenditures — 18 3 Distributions from unconsolidated affiliate in excess of cumulative earnings 80 — — Year Ended December 31, 2019 CenterPoint Energy Equity Method Investment in Enable Infrastructure Services Disposal Group (1) Energy Services Disposal Group (in millions) Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ — $ 50 $ 12 Amortization of intangible assets in Non-utility cost of revenues — 19 — Write-down of natural gas inventory — — 4 Equity in losses of unconsolidated affiliate (229) — — Distributions from unconsolidated affiliate 261 — — Cash flows from investing activities: Capital expenditures — 67 12 Distributions from unconsolidated affiliate in excess of cumulative earnings 42 — — Non-cash transactions: Accounts payable related to capital expenditures — — 2 (1) Reflects February 1, 2019 to December 31, 2019 results only due to the Merger. Year Ended December 31, 2020 2019 CERC Energy Services Disposal Group (in millions) Cash flows from operating activities: Depreciation and amortization $ — $ 12 Write-down of natural gas inventory 3 4 Cash flows from investing activities: Capital expenditures 3 12 Non-cash transactions: Accounts payable related to capital expenditures — 2 |
Business Acquisition, Pro Forma Information | The results of operations for Vectren included in CenterPoint Energy’s Consolidated Financial Statements from the Merger Date for the year ended December 31, 2019, reflecting results included in both continuing operations and discontinued operations, are as follows: (in millions) Operating revenues $ 2,729 Net income 190 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate revenues by reportable segment and major source and exclude operating revenues from the Energy Services and Infrastructure Services Disposal Groups, which are reflected as discontinued operations prior to the date of closing of each transaction. See Note 4 for further information. CenterPoint Energy Year Ended December 31, 2021 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,726 $ 4,281 $ 249 $ 8,256 Other (1) 37 55 4 96 Total revenues $ 3,763 $ 4,336 $ 253 $ 8,352 Year Ended December 31, 2020 Electric Natural Gas Corporate and Other Total (in millions) Revenue from contracts $ 3,451 $ 3,586 $ 313 $ 7,350 Other (1) 19 45 4 68 Total revenues $ 3,470 $ 3,631 $ 317 $ 7,418 Year Ended December 31, 2019 Electric (2) Natural Gas (2) Corporate and Other (2) Total (in millions) Revenue from contracts $ 3,507 $ 3,714 $ 290 $ 7,511 Other (1) 12 36 5 53 Total revenues $ 3,519 $ 3,750 $ 295 $ 7,564 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Total lease income was $7 million for the year ended December 31, 2021 and $6 million for each of the years ended December 31, 2020 and 2019. (2) Reflects revenues from Vectren subsidiaries for the period from February 1, 2019 to December 31, 2019. Houston Electric Year Ended December 31, 2021 2020 2019 (in millions) Revenue from contracts $ 3,117 $ 2,896 $ 2,984 Other (1) 17 15 6 Total revenues $ 3,134 $ 2,911 $ 2,990 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the years ended December 31, 2021, 2020, and 2019. CERC Year Ended December 31, 2021 2020 2019 (in millions) Revenue from contracts $ 3,210 $ 2,714 $ 2,979 Other (1) 38 49 39 Total revenues $ 3,248 $ 2,763 $ 3,018 (1) Primarily consists of income from ARPs and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with |
Contract with Customer, Asset and Liability | The opening and closing balances of accounts receivable, other accrued unbilled revenue, contract assets and contract liabilities from contracts with customers are as follows: CenterPoint Energy Accounts Receivable Other Accrued Unbilled Revenues Contract Contract Liabilities (in millions) Opening balance as of December 31, 2020 $ 604 $ 505 $ 27 $ 18 Closing balance as of December 31, 2021 627 513 15 16 Increase $ 23 $ 8 $ (12) $ (2) The amount of revenue recognized in the year ended December 31, 2021 that was included in the opening contract liability was $17 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between CenterPoint Energy’s performance and the customer’s payment. Houston Electric Accounts Receivable Other Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2020 $ 225 $ 113 $ 3 Closing balance as of December 31, 2021 225 127 4 Increase (decrease) $ — $ 14 $ 1 The amount of revenue recognized in the year ended December 31, 2021 that was included in the opening contract liability was $3 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between Houston Electric’s performance and the customer’s payment. CERC Accounts Receivable Other Accrued (in millions) Opening balance as of December 31, 2020 $ 214 $ 261 Closing balance as of December 31, 2021 223 247 Increase (decrease) $ 9 $ (14) CERC does not have any opening or closing contract asset or contract liability balances. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Remaining Performance Obligations (CenterPoint Energy). The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts and (2) when CenterPoint Energy expects to recognize this revenue. Such contracts include energy performance and sustainable infrastructure services contracts of Energy Systems Group, which are included in Corporate and Other. Rolling 12 Months Thereafter Total (in millions) Revenue expected to be recognized on contracts in place as of December 31, 2021: Corporate and Other $ 232 $ 549 $ 781 $ 232 $ 549 $ 781 |
Accounts Receivable, Allowance for Credit Loss | The table below summarizes the Registrants’ bad debt expense amounts for 2021, 2020 and 2019, net of regulatory deferrals, including those related to COVID-19: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Bad debt expense $ 12 $ — $ 11 $ 24 $ — $ 18 $ 18 $ — $ 14 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (CenterPoint Energy and CERC) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segments | CenterPoint Energy’s goodwill by reportable segment as of December 31, 2020 and changes in the carrying amount of goodwill as of December 31, 2021 are as follows: December 31, 2020 Held for Sale Disposals December 31, (in millions) Electric (1) $ 936 $ — $ — $ 936 Natural Gas 3,323 398 (2) 5 (3) 2,920 Corporate and Other 438 — — 438 Total $ 4,697 $ 398 $ 5 $ 4,294 CERC’s goodwill is as follows: December 31, 2020 Held for Sale Disposals December 31, (in millions) Goodwill $ 757 $ 144 (2) $ 2 (3) $ 611 (1) Amount presented is net of the accumulated goodwill impairment charge of $185 million recorded in 2020. (2) Represents goodwill attributable to the Natural Gas businesses. For further information, see Note 4. (3) Represents goodwill attributable to the MES disposal. For further information, see Note 4. |
Schedule of Finite-Lived Intangible Assets | The tables below present information on CenterPoint Energy’s other intangible assets recorded in Other in Other Assets on the Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Statements of Consolidated Income, unless otherwise indicated in the tables below. December 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance (in millions) Customer relationships $ 33 $ (12) $ 21 $ 33 $ (8) $ 25 Trade names 16 (5) 11 16 (3) 13 Construction backlog (1) — — — 5 (5) — Operation and maintenance agreements (1) 12 (1) 11 12 (1) 11 Other 2 (1) 1 2 (1) 1 Total $ 63 $ (19) $ 44 $ 68 $ (18) $ 50 (1) Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Statements of Consolidated Income. |
Finite-lived Intangible Assets Amortization Expense | Year Ended December 31, 2021 2020 2019 (in millions) Amortization expense of intangible assets recorded in Depreciation and amortization (1) (2) $ 6 $ 6 $ 5 Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (2) 1 2 4 (1) Includes $5 million for the year ended December 31, 2019 of amortization expense related to intangibles acquired in the Merger. (2) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 4. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | terPoint Energy estimates that amortization expense of intangible assets with finite lives for the next five years will be as follows: Amortization Expense (in millions) 2022 $ 6 2023 6 2024 5 2025 5 2026 5 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | The following is a list of regulatory assets and liabilities, excluding amounts related to the Arkansas and Oklahoma Natural Gas businesses classified as held for sale, reflected on the Registrants’ respective Consolidated Balance Sheets as of December 31, 2021 and 2020. For information about regulatory assets and liabilities in held for sale, see Note 4. December 31, 2021 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 412 $ — $ 5 Asset retirement obligations & other 240 45 192 Net deferred income taxes 41 29 2 Total future amounts recoverable from ratepayers 693 74 199 Amounts deferred for future recovery related to: Extraordinary gas costs 1,528 — 1,454 Cost recovery riders 124 — — Hurricane and February 2021 Winter Storm Event restoration costs 105 105 — Other regulatory assets 94 57 37 Gas recovery costs 29 — 29 Decoupling 25 — 25 COVID-19 incremental costs 23 8 15 Emergency generation costs 21 21 — Unrecognized equity return (28) (3) (4) Total amounts deferred for future recovery 1,921 188 1,556 Amounts currently recovered in customer rates related to: Authorized trackers and cost deferrals 504 24 11 Securitized regulatory assets 420 420 — Unamortized loss on reacquired debt and hedging 92 67 — Gas recovery costs 72 — 40 Extraordinary gas costs 66 — 66 Regulatory assets related to TCJA 48 46 2 Hurricane Harvey restoration costs 43 43 — Benefit obligations 28 24 4 Unrecognized equity return (2) (171) (97) (12) Total amounts recovered in customer rates (3) 1,102 527 111 Total Regulatory Assets $ 3,716 $ 789 $ 1,866 Total Current Regulatory Assets (4) $ 1,395 $ — $ 1,289 Total Non-Current Regulatory Assets $ 2,321 $ 789 $ 577 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,389 $ 738 $ 400 Estimated removal costs 1,304 229 452 Other regulatory liabilities 481 205 128 Total Regulatory Liabilities $ 3,174 $ 1,172 $ 980 Total Current Regulatory Liabilities (5) $ 21 $ 20 $ 1 Total Non-Current Regulatory Liabilities $ 3,153 $ 1,152 $ 979 December 31, 2020 CenterPoint Energy Houston Electric CERC (in millions) Regulatory Assets: Future amounts recoverable from ratepayers related to: Benefit obligations (1) $ 550 $ — $ 4 Asset retirement obligations & other 173 39 125 Net deferred income taxes 37 25 3 Total future amounts recoverable from ratepayers 760 64 132 Amounts deferred for future recovery related to: Cost recovery riders 221 — — Other regulatory assets 90 38 52 Hurricane restoration costs 36 36 — COVID-19 incremental costs 23 5 18 Gas recovery costs 9 — 9 Decoupling 2 — 2 Unrecognized equity return (42) — (5) Total amounts deferred for future recovery 339 79 76 Amounts currently recovered in customer rates related to: Securitized regulatory assets 633 633 — Authorized trackers and cost deferrals 332 30 20 Unamortized loss on reacquired debt and hedging 111 73 — Hurricane Harvey restoration costs 55 55 — Benefit obligations 37 31 6 Regulatory assets related to TCJA 25 20 5 Gas recovery costs 7 — 7 Unrecognized equity return (2) (187) (137) (8) Total amounts recovered in customer rates 1,013 705 30 Total Regulatory Assets $ 2,112 $ 848 $ 238 Total Current Regulatory Assets $ 18 $ — $ 18 Total Non-Current Regulatory Assets $ 2,094 $ 848 $ 220 Regulatory Liabilities: Regulatory liabilities related to TCJA $ 1,484 $ 764 $ 421 Estimated removal costs 1,470 231 656 Other regulatory liabilities 566 300 178 Total Regulatory Liabilities $ 3,520 $ 1,295 $ 1,255 Total Current Regulatory Liabilities (5) $ 72 $ 43 $ 29 Total Non-Current Regulatory Liabilities $ 3,448 $ 1,252 $ 1,226 (1) Pension and postretirement-related regulatory assets balances are measured annually, and the ending amortization period may change based on the actuarial valuation. (2) Represents the following: (a) CenterPoint Energy’s allowed equity return on post in-service carrying cost generally associated with investments in Indiana; (b) Houston Electric’s allowed equity return on its true-up balance of stranded costs, other changes and related interest resulting from the formerly integrated electric utilities prior to Texas deregulation to be recovered in rates through 2024 and certain storm restoration balances pending recovery in the next rate proceeding; and (c) CERC’s allowed equity return on post in-service carrying cost associated with certain distribution facilities replacements expenditures in Texas. (3) Of the $1.1 billion, $527 million and $111 million currently being recovered in customer rates related to CenterPoint Energy, Houston Electric and CERC, respectively, $558 million, $459 million and $7 million is earning a return, respectively. The weighted average recovery period of regulatory assets currently being recovered in base rates, not earning a return, which totals $175 million, $67 million and $69 million for CenterPoint Energy, Houston Electric and CERC, respectively, is 11 years, 23 years and 2 years, respectively. Regulatory assets not earning a return with perpetual or undeterminable lives have been excluded from the weighted average recovery period calculation. (4) Current regulatory assets for CenterPoint Energy and CERC include extraordinary gas costs of $1,256 million and $1,182 million, respectively. (5) Current regulatory liabilities are included in Other current liabilities in each of the Registrants’ respective Consolidated Balance Sheets. The table below reflects the amount of allowed equity return recognized by each Registrant in its Statements of Consolidated Income: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Allowed equity return recognized $ 40 $ 37 $ 1 $ 31 $ 31 $ — $ 45 $ 45 $ — |
Stock-Based Incentive Compens_2
Stock-Based Incentive Compensation Plans and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Stock-Based Incentive Compensation Plans and Employee Benefit Plans [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes CenterPoint Energy’s expenses related to LTIPs for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions) LTIP compensation expense (1) $ 48 $ 38 $ 28 Income tax benefit recognized 11 9 7 Actual tax benefit realized for tax deductions 4 5 12 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income and shown prior to any amounts capitalized. |
Share-Based Compensation, Activity | The following tables summarize CenterPoint Energy’s LTIP activity for 2021: Year Ended December 31, 2021 Shares Weighted-Average Remaining Average Aggregate Intrinsic Value (2) (Millions) Performance Awards (1) Outstanding and nonvested as of December 31, 2020 3,900 $ 26.58 Granted 2,095 21.89 Forfeited or canceled (1,017) 26.44 Vested and released to participants (315) 26.79 Outstanding and nonvested as of December 31, 2021 4,663 $ 24.48 1.2 $ 90 Stock Unit Awards Outstanding and nonvested as of December 31, 2020 1,289 $ 25.71 Granted 1,609 24.20 Forfeited or canceled (91) 26.23 Vested and released to participants (440) 25.26 Outstanding and nonvested as of December 31, 2021 2,367 $ 24.75 1.4 $ 66 (1) Reflects maximum performance achievement. (2) Reflects the impact of current expectations of achievement and stock price. |
Share-Based Compensation Arrangement By Award, Weighted Average Grant Date Fair Value, Grant Date Intrinsic Value, and Vested Grant Date Fair Value | The weighted average grant date fair values per unit of awards granted were as follows for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 (in millions, except for per unit amounts) Performance Awards Weighted-average grant date fair value per unit of awards granted $ 21.89 $ 23.82 $ 31.16 Total intrinsic value of awards received by participants 7 9 36 Vested grant date fair value 8 9 20 Stock Unit Awards Weighted-average grant date fair value per unit of awards granted $ 24.20 $ 21.53 $ 31.07 Total intrinsic value of awards received by participants 11 12 15 Vested grant date fair value 11 12 9 |
Schedule of Net Benefit Costs | CenterPoint Energy’s net periodic cost includes the following components relating to pension, including the non-qualified benefit plans: Year Ended December 31, 2021 2020 2019 (in millions) Service cost (1) $ 39 $ 43 $ 40 Interest cost (2) 59 75 96 Expected return on plan assets (2) (103) (112) (105) Amortization of prior service cost (2) — — 9 Amortization of net loss (2) 36 41 52 Settlement cost (2) (3) 38 2 2 Curtailment gain (2) (4) — — (1) Net periodic cost $ 69 $ 49 $ 93 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. (3) A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In 2021, 2020 and 2019, CenterPoint Energy recognized non-cash settlement cost due to lump sum settlement payments. (4) A curtailment gain or loss is required when the expected future services of a significant number of employees are reduced or eliminated for the accrual of benefits. In 2019, CenterPoint Energy recognized a pension curtailment gain related to employees who were terminated after the Merger Date. Postretirement benefits are accrued over the active service period of employees. The net postretirement benefit cost includes the following components: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 2 $ — $ 1 $ 2 $ — $ 1 $ 3 $ 1 $ 1 Interest cost (2) 9 4 3 11 5 3 15 7 5 Expected return on plan assets (2) (4) (3) (1) (5) (4) (1) (5) (4) (1) Amortization of prior service cost (credit) (2) (4) (5) 1 (4) (5) 1 (5) (6) 1 Net postretirement benefit cost (credit) $ 3 $ (4) $ 4 $ 4 $ (4) $ 4 $ 8 $ (2) $ 6 (1) Amounts presented in the table above are included in Operation and maintenance expense in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals and amounts capitalized. (2) Amounts presented in the table above are included in Other, net in each of the Registrants’ respective Statements of Consolidated Income, net of regulatory deferrals. |
Schedule of Assumptions Used | CenterPoint Energy used the following assumptions to determine net periodic cost relating to pension benefits: Year Ended December 31, 2021 2020 2019 Discount rate 2.45 % 3.20 % 4.35 % Expected return on plan assets 5.00 5.75 6.00 Rate of increase in compensation levels 5.05 4.95 4.60 The following assumptions were used to determine net periodic cost relating to postretirement benefits: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Discount rate 2.50 % 2.50 % 2.50 % 3.25 % 3.25 % 3.25 % 3.20 % 3.20 % 3.20 % Expected return on plan assets 3.20 3.30 2.85 3.95 4.05 3.35 4.60 4.70 4.15 |
Schedule of Net Pension and Post-retirement Benefit Costs | The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in the Consolidated Balance Sheets as well as the key assumptions of CenterPoint Energy’s pension plans. The measurement dates for plan assets and obligations were December 31, 2021 and 2020. December 31, 2021 2020 (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 2,507 $ 2,453 Service cost 38 43 Interest cost 59 75 Benefits paid (285) (207) Actuarial (gain) loss (1) (22) 143 Plan amendment 1 — Benefit obligation, end of year 2,298 2,507 Change in Plan Assets Fair value of plan assets, beginning of year 2,135 2,005 Employer contributions 61 86 Benefits paid (285) (207) Actual investment return 161 251 Fair value of plan assets, end of year 2,072 2,135 Funded status, end of year $ (226) $ (372) Amounts Recognized in Balance Sheets Non-current assets $ 6 $ — Current liabilities-other (7) (8) Other liabilities-benefit obligations (225) (364) Net liability, end of year $ (226) $ (372) Actuarial Assumptions Discount rate (2) 2.80 % 2.45 % Expected return on plan assets (3) 5.00 5.00 Rate of increase in compensation levels 4.95 5.05 Interest crediting rate 2.25 2.25 (1) Significant sources of gain for 2021 include the increase in discount rate from 2.45% to 2.80%, and actual return on plan assets exceeding expected return on assets during 2021. (2) The discount rate assumption was determined by matching the projected cash flows of CenterPoint Energy’s plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. (3) The expected rate of return assumption was developed using the targeted asset allocation of CenterPoint Energy’s plans and the expected return for each asset class. The following table summarizes changes in the benefit obligation, plan assets, the amounts recognized in consolidated balance sheets and the key assumptions of the postretirement plans. The measurement dates for plan assets and benefit obligations were December 31, 2021 and 2020. December 31, 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions, except for actuarial assumptions) Change in Benefit Obligation Benefit obligation, beginning of year $ 366 $ 168 $ 105 $ 356 $ 162 $ 102 Service cost 2 — 1 2 — 1 Interest cost 9 4 3 11 5 3 Participant contributions 7 2 2 6 2 2 Benefits paid (21) (9) (6) (22) (10) (6) Early Retiree Reinsurance Program 20 — 11 — — — Plan amendment — 5 — — — — Actuarial (gain) loss (1) (47) (22) (11) 13 9 3 Benefit obligation, end of year 336 148 105 366 168 105 Change in Plan Assets Fair value of plan assets, beginning of year 134 106 28 128 101 27 Employer contributions 7 1 3 10 3 3 Participant contributions 7 2 2 6 2 2 Benefits paid (21) (9) (6) (22) (10) (6) Actual investment return 5 4 1 12 10 2 Fair value of plan assets, end of year 132 104 28 134 106 28 Funded status, end of year $ (204) $ (44) $ (77) $ (232) $ (62) $ (77) Amounts Recognized in Balance Sheets Current liabilities — other $ (7) $ — $ (3) $ (9) $ — $ (3) Other liabilities — benefit obligations (197) (44) (73) (223) (62) (74) Net liability, end of year $ (204) $ (44) $ (76) $ (232) $ (62) $ (77) Actuarial Assumptions Discount rate (2) 2.85 % 2.85 % 2.85 % 2.50 % 2.50 % 2.50 % Expected return on plan assets (3) 3.22 3.32 2.86 3.20 3.30 2.85 Medical cost trend rate assumed for the next year - Pre-65 6.00 6.00 6.00 5.25 5.25 5.25 Medical/prescription drug cost trend rate assumed for the next year - Post-65 18.71 18.71 18.71 19.70 19.70 19.70 Prescription drug cost trend rate assumed for the next year - Pre-65 8.00 8.00 8.00 7.50 7.50 7.50 Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 4.50 4.50 4.50 4.50 4.50 Year that the cost trend rates reach the ultimate trend rate - Pre-65 2029 2029 2029 2028 2028 2028 Year that the cost trend rates reach the ultimate trend rate - Post-65 2030 2030 2030 2029 2029 2029 (1) Significant sources of gain for 2021 include updated claims and demographic experience and the increase in discount rate from 2.50% to 2.85%. (2) The discount rate assumption was determined by matching the projected cash flows of the plans against a hypothetical yield curve of high-quality corporate bonds represented by a series of annualized individual discount rates from one-half to 99 years. |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table displays pension benefits related to CenterPoint Energy’s pension plans that have accumulated benefit obligations in excess of plan assets: December 31, 2021 2020 Pension Pension Pension Pension (in millions) Accumulated benefit obligation $ 2,216 $ 62 $ 2,427 $ 68 Projected benefit obligation 2,237 62 2,440 68 Fair value of plan assets 2,072 — 2,135 — |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss (gain) consist of the following: December 31, 2021 2020 Pension Postretirement Pension Postretirement CenterPoint Energy CenterPoint Energy CERC CenterPoint Energy CenterPoint Energy CERC (in millions) Unrecognized actuarial loss (gain) $ 99 $ (23) $ (18) $ 109 $ (14) $ (12) Unrecognized prior service cost — 13 12 — 7 7 Net amount recognized in accumulated other comprehensive loss (gain) $ 99 $ (10) $ (6) $ 109 $ (7) $ (5) Changes in accumulated comprehensive income (loss) are as follows: Year Ended December 31, 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (90) $ — $ 10 $ (98) $ (15) $ 10 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans 16 — — (12) — — Other comprehensive income (loss) from unconsolidated affiliates 3 — — (2) — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (1) 1 — 1 — — 1 Actuarial losses (1) 7 — — 7 — — Settlement (2) 4 — — — — — Reclassification of deferred loss from cash flow hedges realized in net income 2 — — — — — Reclassification of deferred loss from cash flow hedges to regulatory assets (3) — — — 19 19 — Tax benefit (expense) (7) — (1) (4) (4) (1) Net current period other comprehensive income (loss) 26 — — 8 15 — Ending Balance $ (64) $ — $ 10 $ (90) $ — $ 10 (1) Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. (2) Amounts presented represent a one-time, non-cash settlement cost (benefit), prior to regulatory deferrals, which are required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. (3) The cost of debt approved by the PUCT as part of Houston Electric’s Stipulation and Settlement Agreement included unrealized gains and losses on interest rate hedges. Accordingly, deferred gains and losses on interest rate hedges were reclassified to regulatory assets or liabilities, as appropriate. |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The changes in plan assets and benefit obligations recognized in other comprehensive income during 2021 are as follows: Pension Postretirement CenterPoint Energy CenterPoint Energy CERC (in millions) Net loss (gain) $ 1 $ (2) $ — Amortization of net loss (7) — — Amortization of prior service cost — (1) (1) Settlement (4) — — Total recognized in comprehensive income $ (10) $ (3) $ (1) Total recognized in net periodic costs and Other comprehensive income $ 59 $ — $ 3 |
Target Allocation of Plan Assets | As part of the investment strategy discussed above, CenterPoint Energy maintained the following weighted average allocation targets for its pension plans as of December 31, 2021: Minimum Maximum U.S. equity 17 % 27 % International equity 9 % 19 % Real estate 2 % 8 % Fixed income 54 % 64 % Cash — % 2 % As part of the investment strategy discussed above, the Registrants maintained the following weighted average allocation targets for the postretirement plans as of December 31, 2021: CenterPoint Energy Houston Electric CERC Minimum Maximum Minimum Maximum Minimum Maximum U.S. equities 13 % 23 % 13 % 23 % 15 % 25 % International equities 3 % 13 % 3 % 13 % 2 % 12 % Fixed income 69 % 79 % 69 % 79 % 68 % 78 % Cash — % 2 % — % 2 % — % 2 % |
Schedule of Allocation of Plan Assets | The following tables set forth by level, within the fair value hierarchy (see Note 10), CenterPoint Energy’s pension plan assets at fair value as of December 31, 2021 and 2020: Fair Value Measurements as of December 31, 2021 2020 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) Cash $ 26 $ — $ — $ 26 $ 29 $ — $ — $ 29 Corporate bonds: Investment grade or above — 833 — 833 — 767 — 767 Equity securities: U.S. companies 89 — — 89 76 — — 76 Cash received as collateral from securities lending 80 — — 80 81 — — 81 U.S. treasuries and government agencies 285 — — 285 225 — — 225 Mortgage backed securities — 7 — 7 — 5 — 5 Asset backed securities — 3 — 3 — 3 — 3 Municipal bonds — 40 — 40 — 43 — 43 Mutual funds (2) — — — — 301 — — 301 International government bonds — 20 — 20 — 18 — 18 Obligation to return cash received as collateral from securities lending (80) — — (80) (81) — — (81) Total investments at fair value $ 400 $ 903 $ — $ 1,303 $ 631 $ 836 $ — $ 1,467 Investments measured by net asset value per share or its equivalent (1) (2) 769 668 Total Investments $ 2,072 $ 2,135 (1) Represents investments in common collective trust funds. (2) The amounts invested in mutual funds and common collective trust funds were allocated as follows: As of December 31, 2021 2020 Common Collective Trust Funds Mutual Funds Common Collective Trust Funds International equities 41 % 14 % 37 % U.S. equities 58 % 55 % 3 % Real estate — % 5 % 1 % Fixed income 1 % 27 % 59 % The following table presents mutual funds by level, within the fair value hierarchy, the Registrants’ postretirement plan assets at fair value as of December 31, 2021 and 2020: Fair Value Measurements as of December 31, 2021 2020 Mutual Funds (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total (in millions) CenterPoint Energy $ 133 $ — $ — $ 133 $ 134 $ — $ — $ 134 Houston Electric 105 — — 105 106 — — 106 CERC 28 — — 28 28 — — 28 The amounts invested in mutual funds were allocated as follows: As of December 31, 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC Fixed income 72 % 73 % 71 % 74 % 74 % 72 % U.S. equities 20 % 19 % 22 % 19 % 18 % 21 % International equities 8 % 8 % 7 % 7 % 8 % 7 % |
Benefit Plan Contributions | The Registrants made the following contributions in 2021 and expect to make the following minimum contributions in 2022 to the indicated benefit plans below: Contributions in 2021 Expected Minimum Contributions in 2022 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Qualified pension plans $ 53 $ — $ — $ — $ — $ — Non-qualified pension plans 8 — — 7 — — Postretirement benefit plans 7 1 3 8 1 3 |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid by the pension and postretirement benefit plans: Pension Postretirement Benefits CenterPoint CenterPoint Houston Electric CERC (in millions) 2022 $ 166 $ 16 $ 7 $ 4 2023 168 17 8 5 2024 167 18 9 5 2025 167 19 9 5 2026 163 20 9 6 2027-2031 730 103 48 30 |
Defined Contribution Plan Disclosures | CenterPoint Energy allocates the savings plan benefit expense to Houston Electric and CERC related to their respective employees. The following table summarizes the Registrants’ savings plan benefit expense for 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Savings plan benefit expenses (1) $ 58 $ 20 $ 18 $ 58 $ 18 $ 19 $ 58 $ 18 $ 18 (1) Amounts presented in the table above are included in Operation and maintenance expense in the Registrants’ respective Statements of Consolidated Income and shown prior to any amounts capitalized. |
Other Benefit Plans | Expenses related to other benefit plans were recorded as follows: Year Ended December 31, 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 3 $ 1 $ 2 $ 1 $ 1 $ — $ 2 $ 1 $ 1 Deferred compensation plans 3 — — 4 1 — 4 1 — Amounts related to other benefit plans were included in Benefit Obligations in the Registrants’ accompanying Consolidated Balance Sheets as follows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Postemployment benefits $ 8 $ 3 $ 5 $ 8 $ 3 $ 5 Deferred compensation plans 40 6 3 43 7 2 Split-dollar life insurance arrangements 29 1 — 32 1 — |
Other Employee Matters | As of December 31, 2021, the Registrants’ employees were covered by collective bargaining agreements as follows: Percentage of Employees Covered Agreement Expiration CenterPoint Energy Houston Electric CERC IBEW Local 66 May 2023 15 % 54 % — % OPEIU Local 12 December 2025 2 % — % 3 % Gas Workers Union Local 340 April 2025 5 % — % 12 % IBEW Locals 1393 and USW Locals 12213 & 7441 December 2023 3 % — % — % IBEW Locals 949 December 2025 3 % — % 7 % USW Locals 13-227 June 2022 5 % — % 14 % USW Locals 13-1 July 2022 — % — % 1 % IBEW Local 702 June 2022 3 % — % — % Teamsters Local 135 October 2024 — % — % — % UWUA Local 175 October 2024 1 % — % — % Total 37 % 54 % 37 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The table below summarizes the Registrants’ outstanding interest rate hedging activity: December 31, 2021 December 31, 2020 Hedging Classification Notional Principal (in millions) Economic hedge (1) $ 84 $ 84 (1) Relates to interest rate derivative instruments at SIGECO. |
Fair Value of Derivative Instruments | The following tables present information about derivative instruments and hedging activities. The first table provides a balance sheet overview of Derivative Assets and Liabilities as of December 31, 2021 and 2020, while the last table provides a breakdown of the related income statement impacts for the years ending December 31, 2021, 2020 and 2019. Fair Value of Derivative Instruments and Hedged Items (CenterPoint Energy) December 31, 2021 December 31, 2020 Balance Sheet Location Derivative Derivative Derivative Derivative (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Assets: Non-trading derivative assets $ 9 $ — $ — $ — Natural gas derivatives (1) Other Assets: Non-trading derivative assets 5 — — — Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities — — — 3 Interest rate derivatives Current Liabilities: Non-trading derivative liabilities — 2 — — Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — — — 7 Interest rate derivatives Other Liabilities: Non-trading derivative liabilities — 12 — 20 Indexed debt securities derivative (2) Current Liabilities — 903 — 953 Total $ 14 $ 917 $ — $ 983 (1) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in a liability position with no offsetting amount (2) Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 12 for further information. |
Income Statement Impact of Derivative Activity | Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy) Year Ended December 31, Income Statement Location 2021 2020 2019 (in millions) Effects of derivatives not designated as hedging instruments on the income statement: Indexed debt securities derivative Gain (loss) on indexed debt securities $ 50 $ (60) $ (292) Total CenterPoint Energy $ 50 $ (60) $ (292) (c) Credit Risk Contingent Features (CenterPoint Energy) Certain of CenterPoint Energy’s derivative instruments contain provisions that require CenterPoint Energy’s debt to maintain an investment grade credit rating on its long-term unsecured unsubordinated debt from S&P and Moody’s. If CenterPoint Energy’s debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment. As of December 31, 2021 2020 (in millions) Aggregate fair value of derivatives with credit-risk-related contingent features in a liability position $ 14 $ 20 Fair value of collateral already posted 7 7 Additional collateral required to be posted if credit risk contingent features triggered (1) 7 3 (1) The maximum collateral required if further escalating collateral is triggered would equal the net liability position. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on a Recurring Basis | The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Equity securities $ 1,439 $ — $ — $ 1,439 $ 873 $ — $ — $ 873 Investments, including money market funds (1) 42 — — 42 43 — — 43 Natural gas derivatives — 14 — 14 — — — — Total assets $ 1,481 $ 14 $ — $ 1,495 $ 916 $ — $ — $ 916 Liabilities Indexed debt securities derivative $ — $ 903 $ — $ 903 $ — $ 953 $ — $ 953 Interest rate derivatives — 14 — 14 — 20 — 20 Natural gas derivatives — — — — — 10 — 10 Total liabilities $ — $ 917 $ — $ 917 $ — $ 983 $ — $ 983 Houston Electric December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 27 $ — $ — $ 27 $ 26 $ — $ — $ 26 Total assets $ 27 $ — $ — $ 27 $ 26 $ — $ — $ 26 CERC December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 14 $ — $ — $ 14 $ 13 $ — $ — $ 13 Total assets $ 14 $ — $ — $ 14 $ 13 $ — $ — $ 13 (1) Amounts are included in Prepaid and Other Current Assets in the respective Consolidated Balance Sheets. |
Estimated Fair Value of Financial Instruments, Debt Instruments | The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s equity securities, including ZENS related derivative liabilities, are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. December 31, 2021 December 31, 2020 CenterPoint Energy (1) Houston Electric (1) CERC CenterPoint Energy (1) Houston Electric (1) CERC Long-term debt, including current maturities (in millions) Carrying amount $ 16,086 $ 5,495 $ 4,380 $ 13,401 $ 5,019 $ 2,428 Fair value 17,385 6,230 4,682 15,226 5,957 2,855 (1) Includes Securitization Bond debt. |
Unconsolidated Affiliate (Cen_2
Unconsolidated Affiliate (CenterPoint Energy and CERC) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Distributions Received from Enable (CenterPoint Energy and CERC): CenterPoint Energy Year Ended December 31, 2021 2020 2019 Per Unit Cash Distribution Per Unit Cash Distribution Per Unit Cash Distribution (in millions, except per unit amounts) Enable Common Units $ 0.6610 $ 155 $ 0.8263 $ 193 $ 1.2970 $ 303 Enable Series A Preferred Units (1) 2.2965 34 2.5000 36 2.5000 36 Total $ 189 $ 229 $ 339 (1) As of December 31, 2020, the Enable Series A Preferred Units annual distribution rate was 10%. On February 18, 2021, five years after the issue date, the Enable Series A Preferred Units annual distribution rate changed to a percentage of the Stated Series A Liquidation Preference per Enable Series A Preferred Unit equal to the sum of (a) Three-Month LIBOR, as calculated on each applicable date of determination, and (b) 8.5%. The transactions with Enable through December 2, 2021 in the following tables exclude transactions with the Energy Services Disposal Group. See Note 4 for further information. CenterPoint Energy and CERC Year Ended December 31, 2021 2020 2019 (in millions) Natural gas expenses, including transportation and storage costs (1) $ 85 $ 86 $ 86 (1) Included in Non-utility costs of revenues, including natural gas on CenterPoint Energy’s and CERC’s respective Statements of Consolidated Income. CenterPoint Energy and CERC December 31, 2020 (in millions) Accounts payable for natural gas purchases from Enable $ 9 Accounts receivable for amounts billed for services provided to Enable 1 Summarized consolidated income (loss) information for Enable is as follows: Year Ended December 31, 2021 (1) 2020 2019 (in millions) Operating revenues $ 3,466 $ 2,463 $ 2,960 Cost of sales, excluding depreciation and amortization 1,959 965 1,279 Depreciation and amortization 382 420 433 Goodwill impairment — 28 86 Operating income 634 465 569 Net income attributable to Enable Common Units 461 52 360 Reconciliation of Equity in Earnings (Losses), net before income taxes: CenterPoint Energy’s interest $ 248 $ 28 $ 193 Basis difference amortization (2) 92 87 47 Loss on dilution, net of proportional basis difference recognition (1) (2) (11) Impairment of CenterPoint Energy’s equity method investment in Enable — (1,541) — Gain on Enable Merger 680 — — CenterPoint Energy’s equity in earnings (losses), net before income taxes (3) $ 1,019 $ (1,428) $ 229 (1) Reflects January 1, 2021 to December 2, 2021 results only due to the closing of the Enable Merger. (2) Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference was being amortized through the year 2048 and ceased upon closing of the Enable Merger. (3) Reported as discontinued operations on CenterPoint Energy’s Statements of Consolidated Income. For further information, see Note 4. Summarized consolidated balance sheet information for Enable is as follows: December 2, December 31, 2021 (1) 2020 (in millions) Current assets $ 594 $ 381 Non-current assets 11,227 11,348 Current liabilities 1,254 582 Non-current liabilities 3,281 4,052 Non-controlling interest 26 26 Preferred equity 362 362 Accumulated other comprehensive loss (1) (6) Enable partners’ equity 6,899 6,713 Reconciliation of Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ equity $ 3,701 $ 3,601 CenterPoint Energy’s basis difference (2) (2,732) (2,819) CenterPoint Energy’s equity method investment in Enable (3) $ 969 $ 782 (1) Reflects balances as of the closing of the Enable Merger on December 2, 2021. (2) Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the year ended December 31, 2020. The basis difference was being amortized through the year 2048 and ceased upon closing of the Enable Merger. (3) Reflected in assets held for sale in CenterPoint Energy’s Consolidated Balance Sheet as of December 31, 2020. For further information, see Note 4. |
Equity Securities and Indexed_2
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Indexed Debt Securities [Abstract] | |
Summarized Financial Information on Investment in Time Warner Securities and Indexed Debt Security Obligation | CenterPoint Energy’s sales of equity securities during the year ended December 31, 2021 are as follows: Equity Security/Date Sold Units Sold Proceeds (2) (in millions) Energy Transfer Common Units December 8, 2021 (1) 50,000,000 $ 384 December 10, 2021 100,000,000 $ 745 Energy Transfer Series G Preferred Units December 13, 2021 192,390 $ 191 (1) Settlement date for a forward sale transaction that CNP Midstream entered into through a Forward Sale Agreement on September 1, 2021 with an investment banking financial institution for 50 million Energy Transfer Common Units CNP Midstream received as consideration in the Enable Merger in exchange for the proceeds of the forward sale transaction. (2) Proceeds are net of transaction costs. CenterPoint Energy’s reference shares for each ZENS consisted of the following: December 31, 2021 2020 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 The following table sets forth summarized financial information regarding CenterPoint Energy’s investment in ZENS-Related Securities and each component of CenterPoint Energy’s ZENS obligation. ZENS-Related Debt Derivative (in millions) Balance as of December 31, 2018 $ 540 $ 24 $ 601 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (5) — Loss on indexed debt securities — — 292 Gain on ZENS-Related Securities 282 — — Balance as of December 31, 2019 822 19 893 Accretion of debt component of ZENS — 17 — 2% interest paid — (16) — Distribution to ZENS holders — (5) — Loss on indexed debt securities — — 60 Gain on ZENS-Related Securities 49 — — Balance as of December 31, 2020 871 15 953 Accretion of debt component of ZENS — 17 — 2% interest paid — (17) — Distribution to ZENS holders — (5) — Gain on indexed debt securities — — (50) Loss on ZENS-Related Securities (51) — — Balance as of December 31, 2021 $ 820 $ 10 $ 903 |
Gain (Loss) on Securities | Gains and losses on equity securities, net of transaction costs, are recorded as Gain (Loss) on Equity Securities in CenterPoint Energy’s Statements of Consolidated Income. Gains (Losses) on Equity Securities Year Ended December 31, 2021 2020 2019 (in millions) AT&T Common $ (43) $ (105) $ 108 Charter Common (8) 154 174 Energy Transfer Common Units (124) — — Energy Transfer Series G Preferred Units 2 — — Other 1 — — $ (172) $ 49 $ 282 |
Debt Securities, Trading, and Equity Securities, FV-NI | CenterPoint Energy and its subsidiaries hold shares of certain securities detailed in the table below, which are classified as trading securities. Shares of AT&T Common and Charter Common are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Shares Held at December 31, Carrying Value at December 31, 2021 2020 2021 2020 (in millions) AT&T Common 10,212,945 10,212,945 $ 251 $ 294 Charter Common 872,503 872,503 569 577 Energy Transfer Common Units 50,999,768 — 420 — Energy Transfer Series G Preferred Units 192,390 — 196 — Other 3 — $ 1,439 $ 871 |
Equity (CenterPoint Energy) (Ta
Equity (CenterPoint Energy) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Dividends Declared [Table Text Block] | CenterPoint Energy declared and paid dividends on its Common Stock during 2021, 2020 and 2019 as presented in the table below: Dividends Declared Per Share Dividends Paid Per Share 2021 2020 (2) 2019 2021 2020 (2) 2019 Common Stock $ 0.6600 $ 0.9000 $ 0.8625 $ 0.6500 $ 0.7400 $ 0.8625 Series A Preferred Stock 61.2500 91.8750 30.6250 61.2500 61.2500 30.6250 Series B Preferred Stock 35.0000 87.5000 52.5000 52.5000 70.0000 52.5000 Series C Preferred Stock (1) — 0.6100 — 0.1600 0.4500 — (1) The Series C Preferred Stock was entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. There were no Series C Preferred Stock outstanding or dividends declared in 2019. All of the outstanding Series C Preferred Stock was converted to Common Stock during 2021 as described below. (2) On April 1, 2020, in response to the reduction in cash flow related to the reduction in Enable quarterly common unit distributions announced by Enable on April 1, 2020, CenterPoint Energy announced a reduction of its quarterly Common Stock dividend per share from $0.2900 to $0.1500. Preferred Stock (CenterPoint Energy) Liquidation Preference Per Share Shares Outstanding as of December 31, Outstanding Value as of December 31, 2021 2020 2019 2021 2020 2019 (in millions, except shares and per share amount) Series A Preferred Stock $ 1,000 800,000 800,000 800,000 $ 790 $ 790 $ 790 Series B Preferred Stock 1,000 — 977,400 977,500 — 950 950 Series C Preferred Stock 1,000 — 625,000 — — 623 — 800,000 2,402,400 1,777,500 $ 790 $ 2,363 $ 1,740 Dividend Requirement on Preferred Stock Year Ended December 31, 2021 2020 2019 (in millions) Series A Preferred Stock $ 49 $ 49 $ 49 Series B Preferred Stock 46 68 68 Series C Preferred Stock — 27 — Preferred dividend requirement 95 144 117 Amortization of beneficial conversion feature — 32 — Total income allocated to preferred shareholders $ 95 $ 176 $ 117 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive loss (gain) consist of the following: December 31, 2021 2020 Pension Postretirement Pension Postretirement CenterPoint Energy CenterPoint Energy CERC CenterPoint Energy CenterPoint Energy CERC (in millions) Unrecognized actuarial loss (gain) $ 99 $ (23) $ (18) $ 109 $ (14) $ (12) Unrecognized prior service cost — 13 12 — 7 7 Net amount recognized in accumulated other comprehensive loss (gain) $ 99 $ (10) $ (6) $ 109 $ (7) $ (5) Changes in accumulated comprehensive income (loss) are as follows: Year Ended December 31, 2021 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (90) $ — $ 10 $ (98) $ (15) $ 10 Other comprehensive income (loss) before reclassifications: Remeasurement of pension and other postretirement plans 16 — — (12) — — Other comprehensive income (loss) from unconsolidated affiliates 3 — — (2) — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (1) 1 — 1 — — 1 Actuarial losses (1) 7 — — 7 — — Settlement (2) 4 — — — — — Reclassification of deferred loss from cash flow hedges realized in net income 2 — — — — — Reclassification of deferred loss from cash flow hedges to regulatory assets (3) — — — 19 19 — Tax benefit (expense) (7) — (1) (4) (4) (1) Net current period other comprehensive income (loss) 26 — — 8 15 — Ending Balance $ (64) $ — $ 10 $ (90) $ — $ 10 (1) Amounts are included in the computation of net periodic cost and are reflected in Other, net in each of the Registrants’ respective Statements of Consolidated Income. (2) Amounts presented represent a one-time, non-cash settlement cost (benefit), prior to regulatory deferrals, which are required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Statements of Consolidated Income, net of regulatory deferrals. (3) The cost of debt approved by the PUCT as part of Houston Electric’s Stipulation and Settlement Agreement included unrealized gains and losses on interest rate hedges. Accordingly, deferred gains and losses on interest rate hedges were reclassified to regulatory assets or liabilities, as appropriate. |
Short-term Borrowings and Lon_2
Short-term Borrowings and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, December 31, Long-Term Current (1) Long-Term Current (1) (in millions) CenterPoint Energy: ZENS due 2029 (2) $ — $ 10 $ — $ 15 CenterPoint Energy senior notes 0.68% to 4.25% due 2024 to 2049 3,650 — 2,700 500 CenterPoint Energy variable rate term loan 0.865% due 2021 — — — 700 CenterPoint Energy pollution control bonds 5.125% due 2028 (3) 68 — 68 — CenterPoint Energy commercial paper (4) (5) 1,400 — 1,078 — VUHI senior notes 3.72% to 6.10% due 2023 to 2045 (6) 377 — 377 55 VUHI commercial paper (4) (5) 350 — 92 — IGC senior notes 6.34% to 7.08% due 2025 to 2029 96 — 96 — SIGECO first mortgage bonds 0.820% to 6.72% due 2022 to 2055 (7) 288 5 293 — Other debt 4 3 6 12 Unamortized debt issuance costs (23) — (17) — Unamortized discount and premium, net (7) — (6) — Houston Electric debt (see details below) 4,975 520 4,406 613 CERC debt (see details below) 4,380 7 2,428 24 Total CenterPoint Energy debt $ 15,558 $ 545 $ 11,521 $ 1,919 Houston Electric: First mortgage bonds 9.15% due 2021 $ — $ — $ — $ 102 General mortgage bonds 2.25% to 6.95% due 2022 to 2051 4,712 300 3,912 300 Restoration Bond Company: System restoration bonds 4.243% due 2022 — 70 69 66 Bond Company IV: Transition bonds 3.028% due 2024 317 150 467 145 Unamortized debt issuance costs (36) — (28) — Unamortized discount and premium, net (18) — (14) — Total Houston Electric debt $ 4,975 $ 520 $ 4,406 $ 613 CERC (8) : Short-term borrowings: Inventory financing (9) $ — $ 7 $ — $ 24 Total CERC short-term borrowings — 7 — 24 Long-term debt: Senior notes 0.62% to 6.625% due 2023 to 2047 $ 3,500 $ — $ 2,100 $ — Commercial paper (4) (5) 899 — 347 — Unamortized debt issuance costs (15) — (15) — Unamortized discount and premium, net (4) — (4) — Total CERC long-term debt 4,380 — 2,428 — Total CERC debt $ 4,380 $ 7 $ 2,428 $ 24 (1) Includes amounts due or exchangeable within one year of the date noted. (2) CenterPoint Energy’s ZENS obligation is bifurcated into a debt component and an embedded derivative component. For additional information regarding ZENS, see Note 12(b). As ZENS are exchangeable for cash at any time at the option of the holders, these notes are classified as a current portion of long-term debt. (3) These pollution control bonds were secured by general mortgage bonds of Houston Electric as of December 31, 2021 and 2020 and are not reflected in Houston Electric’s consolidated financial statements because of the contingent nature of the obligations. (4) Classified as long-term debt because the termination date of the facility that backstops the commercial paper is more than one year from the date noted. (5) Commercial paper issued by CenterPoint Energy, CERC Corp. and VUHI has maturities up to 60 days, 30 days, and 30 days, respectively, and are backstopped by the respective issuer’s long-term revolving credit facility. (6) The senior notes issued by VUHI are guaranteed by SIGECO, Indiana Gas and VEDO. (7) The first mortgage bonds issued by SIGECO subject SIGECO’s properties to a lien under the related mortgage indenture as further discussed below. (8) Issued by CERC Corp. (9) Represents AMA transactions accounted for as an inventory financing. Outstanding obligations related to third-party AMAs associated with utility distribution service in Arkansas and Oklahoma of $36 million as of December 31, 2021 are reflected in current liabilities held for sale on CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets. For further information about AMAs, see Notes 4 and 16. |
Schedule of Revolving Credit Facilities and Utilization of Such Facilities | During 2021, the following debt instruments were issued or incurred: Registrant Issuance Date Debt Instrument Aggregate Principal Amount Interest Rate Maturity Date (in millions) CERC March 2021 Senior Notes $ 700 0.70% 2023 CERC March 2021 Floating Rate Senior Notes 1,000 Three-month LIBOR plus 0.5% 2023 Total CERC (1) 1,700 Houston Electric March 2021 General Mortgage Bonds 400 2.35% 2031 Houston Electric March 2021 General Mortgage Bonds 700 3.35% 2051 Total Houston Electric (2) 1,100 CenterPoint Energy May 2021 Senior Notes 500 1.45% 2026 CenterPoint Energy May 2021 Senior Notes 500 2.65% 2031 CenterPoint Energy May 2021 Floating Rate Senior Notes 700 SOFR plus 0.65% 2024 Total CenterPoint Energy (3) $ 4,500 (1) In February 2021, CERC Corp. received financing commitments totaling $1.7 billion on a 364-day term loan facility to bridge any working capital needs related to the February 2021 Winter Storm Event. Total proceeds of the senior notes and floating rate senior note offerings, net of issuance expenses and fees, of approximately $1.69 billion were used for general corporate purposes, including to fund working capital. Upon the consummation of its senior notes offerings, in March 2021, CERC Corp. terminated all of the commitments for the 364-day term loan facility. (2) Total proceeds, net of issuance expenses and fees, of approximately $1.08 billion were used for general limited liability company purposes, including capital expenditures and the repayment of outstanding debt discussed below and Houston Electric’s borrowings under the CenterPoint Energy money pool. (3) Total proceeds, net of issuance expenses and fees, of approximately $1.69 billion, excluding amounts issued by Houston Electric and CERC, were used for general corporate purposes, including the repayment of outstanding debt discussed below and a portion of CenterPoint Energy’s outstanding commercial paper. Registrant Repayment/Redemption Date Debt Instrument Aggregate Principal Interest Rate Maturity Date (in millions) CERC (1) December 2021 Senior Notes $ 300 3.55% 2023 Total CERC 300 Houston Electric March 2021 First Mortgage Bonds 102 9.15% 2021 Houston Electric (2) May 2021 General Mortgage Bonds 300 1.85% 2021 Total Houston Electric 402 CenterPoint Energy (3) January 2021 Senior Notes 250 3.85% 2021 CenterPoint Energy (4) May 2021 Term Loan 700 0.76% 2021 CenterPoint Energy (5) June 2021 Senior Notes 500 3.60% 2021 CenterPoint Energy November 2021 Senior Notes 55 4.67% 2021 CenterPoint Energy (6) December 2021 Senior Notes 500 2.50% 2022 Total CenterPoint Energy $ 2,707 (1) In December 2021, CERC provided notice of redemption and on December 30, 2021, CERC redeemed all of the outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest and an applicable make-whole premium. (2) In April 2021, Houston Electric provided notice of redemption and on May 1, 2021, Houston Electric redeemed all of the outstanding bonds of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. (3) In December 2020, CenterPoint Energy provided notice of redemption of a portion of its outstanding $500 million aggregate principal amount of the series and on January 15, 2021, CenterPoint Energy redeemed $250 million aggregate principal amount of the series at a redemption price equal to 100% of the principal amount redeemed, plus accrued and unpaid interest and an applicable make-whole premium. (4) In April 2021, CenterPoint Energy amended its existing term loan agreement by extending its maturity from May 15, 2021 to June 14, 2021. The outstanding LIBOR rate loan balance was prepaid in full at a price equal to 100% of the principal amount, plus accrued and unpaid interest, which was calculated based on the interest rate at maturity. (5) In May 2021, CenterPoint Energy provided notice of redemption and on June 1, 2021, CenterPoint Energy redeemed all of the outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest and an applicable make-whole premium. (6) In December 2021, CenterPoint Energy provided notice of redemption and on December 30, 2021, CenterPoint Energy redeemed all of the outstanding senior notes of the series at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest and an applicable make-whole premium. The Registrants had the following revolving credit facilities as of December 31, 2021: Execution Registrant Size of Draw Rate of LIBOR plus (1) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of December 31, 2021 (2) Termination (in millions) February 4, 2021 CenterPoint Energy $ 2,400 1.625% 65% (3) 61.8% February 4, 2024 February 4, 2021 CenterPoint Energy (4) 400 1.250% 65% 48.9% February 4, 2024 February 4, 2021 Houston Electric 300 1.375% 67.5% (3) 56.2% February 4, 2024 February 4, 2021 CERC 900 1.250% 65% 60.6% February 4, 2024 Total $ 4,000 (1) Based on credit ratings as of December 31, 2021. (2) As defined in the revolving credit facility agreement, excluding Securitization Bonds. (3) For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. (4) This credit facility was issued by VUHI, is guaranteed by SIGECO, Indiana Gas and VEDO and includes a $20 million letter of credit sublimit. This credit facility backstops VUHI’s commercial paper program. The Registrants, as well as the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of December 31, 2021. As of December 31, 2021 and 2020, the Registrants had the following revolving credit facilities and utilization of such facilities: December 31, 2021 December 31, 2020 Registrant Loans Letters Commercial Weighted Average Interest Rate Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy (1) $ — $ 11 $ 1,400 0.34 % $ — $ 11 $ 1,078 0.23 % CenterPoint Energy (2) — — 350 0.21 % — — 92 0.22 % Houston Electric — — — — % — — — — % CERC — — 899 0.26 % — — 347 0.23 % Total $ — $ 11 $ 2,649 $ — $ 11 $ 1,517 (1) CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. (2) This credit facility was issued by VUHI and is guaranteed by SIGECO, Indiana Gas and VEDO. |
Schedule of Maturities of Long-term Debt | Maturities. As of December 31, 2021, maturities of long-term debt, excluding the ZENS obligation and unamortized discounts, premiums and issuance costs, were as follows: CenterPoint Energy (1) Houston Electric (1) CERC Securitization Bonds (in millions) 2022 $ 524 $ 520 $ — $ 220 2023 2,113 356 1,700 156 2024 4,283 161 899 161 2025 51 — — — 2026 860 300 — — (1) These maturities include Securitization Bonds principal repayments on scheduled payment dates. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The components of the Registrant’s income tax expense (benefit) were as follows: Year Ended December 31, 2021 2020 2019 (in millions) CenterPoint Energy - Continuing Operations Current income tax expense (benefit): Federal $ — $ (36) $ (6) State (28) 32 13 Total current expense (benefit) (28) (4) 7 Deferred income tax expense (benefit): Federal 78 63 48 State 60 21 (25) Total deferred expense 138 84 23 Total income tax expense $ 110 $ 80 $ 30 Year Ended December 31, 2021 2020 2019 (in millions) CenterPoint Energy - Discontinued Operations Current income tax expense: Federal $ 91 $ 152 $ 54 State 35 28 8 Total current expense 126 180 62 Deferred income tax expense (benefit): Federal 127 (422) 26 State (52) (91) 20 Total deferred expense (benefit) 75 (513) 46 Total income tax expense (benefit) $ 201 $ (333) $ 108 Houston Electric Current income tax expense: Federal $ 22 $ 76 $ 84 State 22 19 20 Total current expense 44 95 104 Deferred income tax expense (benefit): Federal 31 (42) (24) State 1 — — Total deferred expense (benefit) 32 (42) (24) Total income tax expense $ 76 $ 53 $ 80 CERC - Continuing Operations Current income tax expense (benefit): State $ (26) $ 4 $ 5 Total current expense (benefit) (26) 4 5 Deferred income tax expense (benefit): Federal 49 26 26 State 28 67 (34) Total deferred expense (benefit) 77 93 (8) Total income tax expense (benefit) $ 51 $ 97 $ (3) CERC - Discontinued Operations Current income tax expense: State — — 2 Total current expense — — 2 Deferred income tax expense (benefit): Federal — — 13 State — (2) 2 Total deferred expense (benefit) — (2) 15 Total income tax expense (benefit) $ — $ (2) $ 17 |
Reconciliation of Expected Federal Income Tax Expense to Actual | A reconciliation of income tax expense (benefit) using the federal statutory income tax rate to the actual income tax expense and resulting effective income tax rate is as follows: Year Ended December 31, 2021 2020 2019 (in millions) CenterPoint Energy - Continuing Operations (1) (2) (3) Income before income taxes $ 778 $ 563 $ 545 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 163 118 114 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 63 40 27 State valuation allowance, net of federal income tax (15) 1 (4) State law change, net of federal income tax (23) — (33) Excess deferred income tax amortization (75) (76) (55) Goodwill impairment — 39 — Net operating loss carryback — (37) — Other, net (3) (5) (19) Total (53) (38) (84) Total income tax expense $ 110 $ 80 $ 30 Effective tax rate 14 % 14 % 6 % CenterPoint Energy - Discontinued Operations (4)(5) (6) Income (loss) before income taxes $ 1,019 $ (1,589) $ 384 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense (benefit) 214 (334) 81 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 14 (60) 9 State law change, net of federal income tax (27) — 12 Goodwill impairment — 25 8 Tax impact of sale of Energy Services and Infrastructure Services Disposal Groups — 30 — Other, net — 6 (2) Total (13) 1 27 Total income tax expense (benefit) $ 201 $ (333) $ 108 Effective tax rate 20 % 21 % 28 % Houston Electric (7) (8) (9) Income before income taxes $ 457 $ 387 $ 436 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 96 81 92 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 18 15 16 Excess deferred income tax amortization (41) (42) (21) Other, net 3 (1) (7) Total (20) (28) (12) Total income tax expense $ 76 $ 53 $ 80 Effective tax rate 17 % 14 % 18 % Year Ended December 31, 2021 2020 2019 (in millions) CERC - Continuing Operations (10) (11) (12) Income before income taxes $ 305 $ 244 $ 186 Federal statutory income tax rate 21 % 21 % 21 % Expected federal income tax expense 64 51 39 Increase (decrease) in tax expense resulting from: State income tax expense, net of federal income tax 33 55 (15) State law change, net of federal income tax (15) — (4) State valuation allowance, net of federal income tax (15) 1 (4) Excess deferred income tax amortization (16) (16) (18) Other, net — 6 (1) Total (13) 46 (42) Total income tax expense (benefit) $ 51 $ 97 $ (3) Effective tax rate 17 % 40 % (2) % CERC - Discontinued Operations (13) (14) Income (loss) before income taxes $ — $ (68) $ 40 Federal statutory income tax rate — % 21 % 21 % Expected federal income tax expense (benefit) — (14) 8 Increase in tax expense resulting from: State income tax expense, net of federal income tax — (2) 3 Goodwill impairment — 10 8 Other, net — 4 (2) Total — 12 9 Total income tax expense (benefit) $ — $ (2) $ 17 Effective tax rate — % 3 % 43 % (1) Recognized a $75 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $23 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (2) Recognized a $76 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $39 million deferred tax expense for the non-deductible portion of the goodwill impairment on SIGECO, and a $37 million benefit for the NOL carryback claim allowed by the CARES Act. (3) Recognized a $55 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $33 million net benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and a $4 million net benefit for the reduction in valuation allowances on certain state NOLs that are now expected to be realized. (4) Recognized a $27 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions. (5) Recognized a $25 million deferred tax expense for the non-deductible portion of the goodwill impairment on both the Energy Services and Infrastructure Services Disposal Groups. Also, recognized a $30 million net tax expense on both the sale of the Energy Services and Infrastructure Services Disposal Groups. (6) Recognized a $12 million deferred tax expense for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, and an $8 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. (7) Recognized a $41 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (8) Recognized a $42 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (9) Recognized a $21 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions. (10) Recognized a $15 million benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions, a $16 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, and a $15 million benefit for the impact of a change in the NOL carryforward period in Louisiana from 20 years to an indefinite period allowing for the release of the valuation allowance on certain Louisiana NOLs. (11) Recognized a $16 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulatory in certain jurisdictions. (12) Recognized an $18 million benefit for the amortization of the net regulatory EDIT liability as decreed by regulators in certain jurisdictions, a $4 million net benefit for the impact of state law changes that resulted in the remeasurement of state deferred taxes in those jurisdictions and a $4 million net benefit for the reduction in valuation allowances on certain state NOLs that are now expected to be realized. (13) Recognized a $10 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. (14) Recognized an $8 million deferred tax expense for the non-deductible portion of the goodwill impairment on the Energy Services Disposal Group. |
Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities were as follows: December 31, 2021 2020 (in millions) CenterPoint Energy Deferred tax assets: Benefits and compensation $ 120 $ 141 Regulatory liabilities 396 435 Loss and credit carryforwards 76 103 Asset retirement obligations 130 152 Indexed debt securities derivative 36 47 Investment in unconsolidated affiliates 1 — Other 50 52 Valuation allowance (11) (26) Total deferred tax assets 798 904 Deferred tax liabilities: Property, plant and equipment 2,912 2,790 Investment in unconsolidated affiliates — 624 Regulatory assets 741 325 Investment in ZENS and equity securities related to ZENS 693 649 Investment in equity securities 195 — Other 161 119 Total deferred tax liabilities 4,702 4,507 Net deferred tax liabilities $ 3,904 $ 3,603 Houston Electric Deferred tax assets: Regulatory liabilities $ 175 $ 201 Benefits and compensation 13 17 Asset retirement obligations 9 9 Other 10 9 Total deferred tax assets 207 236 Deferred tax liabilities: Property, plant and equipment 1,215 1,159 Regulatory assets 114 118 Total deferred tax liabilities 1,329 1,277 Net deferred tax liabilities $ 1,122 $ 1,041 December 31, 2021 2020 (in millions) CERC Deferred tax assets: Benefits and compensation $ 25 $ 28 Regulatory liabilities 139 147 Loss and credit carryforwards 571 143 Asset retirement obligations 118 140 Other 26 26 Valuation allowance — (15) Total deferred tax assets 879 469 Deferred tax liabilities: Property, plant and equipment 948 916 Regulatory assets 514 53 Other 97 84 Total deferred tax liabilities 1,559 1,053 Net deferred tax liabilities $ 680 $ 584 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of CenterPoint Energy’s beginning and ending balance of unrecognized tax benefits, excluding interest and penalties, for 2021 and 2020 are as follows: Year Ended December 31, 2021 2020 (in millions) Balance, beginning of year $ 7 $ 8 Increases related to tax positions of prior years — 3 Decreases related to tax positions of prior years (4) (4) Balance, end of year $ 3 $ 7 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | As of December 31, 2021, minimum purchase obligations were approximately: Natural Gas and Coal Supply (1) Other (2) CenterPoint Energy CERC CenterPoint Energy (in millions) 2022 $ 560 $ 322 $ 66 2023 444 253 500 2024 378 247 178 2025 318 206 30 2026 254 176 29 2027 and beyond 1,586 1,282 596 (1) On January 10, 2022, CERC Corp. completed the sale of its Arkansas and Oklahoma Natural Gas businesses; therefore minimum purchase obligations for the Arkansas and Oklahoma Natural Gas businesses have been excluded from the table above. For additional information, see Note 4. (2) CenterPoint Energy’s undiscounted minimum payment obligations related to PPAs with commitments ranging from 15 to 25 years and its purchase commitment under its BTA in Posey County, Indiana at the original contracted amount, prior to any renegotiation, are included above. The remaining undiscounted payment obligations relate primarily to technology hardware and software agreements. |
Schedule of Environmental Loss Contingencies by Site | Total costs that may be incurred in connection with addressing these sites cannot be determined at this time. The estimated accrued costs are limited to CenterPoint Energy’s and CERC’s share of the remediation efforts and are therefore net of exposures of other PRPs. The estimated range of possible remediation costs for the sites for which CenterPoint Energy and CERC believe they may have responsibility was based on remediation continuing for the minimum time frame given in the table below. December 31, 2021 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 16 $ 11 Minimum estimated remediation costs 11 8 Maximum estimated remediation costs 58 36 Minimum years of remediation 5 30 Maximum years of remediation 50 50 |
Earnings Per Share (CenterPoi_2
Earnings Per Share (CenterPoint Energy) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Basic earnings per common share is determined by dividing Income available to common shareholders - basic by the Weighted average common shares outstanding - basic for the applicable period. Diluted earnings per common share is determined by the inclusion of potentially dilutive common stock equivalent shares that may occur if securities to issue Common Stock were exercised or converted into Common Stock. For the Year Ended December 31, 2021 2020 2019 (in millions, except per share and share amounts) Numerator: Income from continuing operations $ 668 $ 483 $ 515 Less: Preferred stock dividend requirement (Note 13) 95 144 117 Less: Amortization of beneficial conversion feature (Note 13) — 32 — Less: Undistributed earnings allocated to preferred shareholders (1) — — — Income available to common shareholders from continuing operations - basic and diluted 573 307 398 Income (loss) available to common shareholders from discontinued operations - basic and diluted 818 (1,256) 276 Income (loss) available to common shareholders - basic and diluted $ 1,391 $ (949) $ 674 Denominator: Weighted average common shares outstanding - basic 592,933,000 531,031,000 502,050,000 Plus: Incremental shares from assumed conversions: Restricted stock 5,181,000 — 3,107,000 Series C Preferred Stock (3) 11,824,000 — — Weighted average common shares outstanding - diluted 609,938,000 531,031,000 505,157,000 Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: Restricted stock — 3,690,000 — Series B Preferred Stock (2) 23,906,000 35,922,000 34,354,000 Series C Preferred Stock (3) — 23,807,000 — For the Year Ended December 31, 2021 2020 2019 (in millions, except per share and share amounts) Earnings (loss) per common share: Basic earnings per common share - continuing operations $ 0.97 $ 0.58 $ 0.79 Basic earnings (loss) per common share - discontinued operations 1.38 (2.37) 0.55 Basic Earnings (Loss) Per Common Share $ 2.35 $ (1.79) $ 1.34 Diluted earnings per common share - continuing operations $ 0.94 $ 0.58 $ 0.79 Diluted earnings (loss) per common share - discontinued operations 1.34 (2.37) 0.54 Diluted Earnings (Loss) Per Common Share $ 2.28 $ (1.79) $ 1.33 (1) There were no undistributed earnings to be allocated to participating securities for the years ended December 31, 2021 and 2020. (2) As of December 31, 2021, all of the outstanding Series B Preferred Stock have been converted into Common Stock. For further information, see Note 13. (3) As of December 31, 2021, all of the outstanding Series C Preferred Stock have been converted into Common Stock. For further information, see Note 13. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Financial Data for Business Segments | Financial data for reportable segments is as follows, including Corporate and Other and Discontinued Operations for reconciliation purposes: CenterPoint Energy Revenues Depreciation Interest Income (1) Interest Expense Income Tax Expense Net Income (Loss) (in millions) For the year ended December 31, 2021: Electric $ 3,763 $ 756 $ — $ (226) $ 95 $ 475 Natural Gas 4,336 502 1 (141) 80 403 Corporate and Other 253 58 118 (278) (65) (210) Eliminations — — (116) 116 — — Continuing Operations $ 8,352 $ 1,316 $ 3 $ (529) $ 110 668 Discontinued Operations, net 818 Consolidated $ 1,486 For the year ended December 31, 2020: Electric $ 3,470 $ 670 $ 3 $ (220) $ 72 $ 230 Natural Gas 3,631 473 8 (153) 125 278 Corporate and Other 317 46 104 (267) (117) (25) Eliminations — — (111) 111 — — Continuing Operations $ 7,418 $ 1,189 $ 4 $ (529) $ 80 483 Discontinued Operations, net (1,256) Consolidated $ (773) For the year ended December 31, 2019: Electric $ 3,519 $ 746 $ 27 $ (225) $ 96 $ 419 Natural Gas 3,750 439 6 (144) 2 251 Corporate and Other 295 40 134 (343) (68) (155) Eliminations — — (145) 145 — — Continuing Operations $ 7,564 $ 1,225 $ 22 $ (567) $ 30 515 Discontinued Operations, net 276 Consolidated $ 791 (1) Interest income from Securitization Bonds of less than $1 million, $1 million and $5 million for the years ended December 31, 2021, 2020 and 2019, respectively, is included in Other income, net on CenterPoint Energy’s and Houston Electric’s respective Statements of Consolidated Income. Total Assets Expenditures for Long-lived Assets December 31, December 31, 2021 2020 2021 2020 2019 (in millions) Electric $ 16,439 $ 14,516 $ 2,008 $ 1,281 $ 1,216 Natural Gas 16,153 15,041 1,178 1,139 1,098 Corporate and Other, net of eliminations (1) 2,749 3,132 42 95 194 Continuing Operations 35,341 32,689 3,228 2,515 2,508 Assets Held for Sale/Discontinued Operations 2,338 782 171 21 79 Consolidated $ 37,679 $ 33,471 $ 3,399 $ 2,536 $ 2,587 |
Schedule of Revenue by Major Customers by Reporting Segments | Houston Electric’s revenues from major external customers are as follows: Year Ended December 31, 2021 2020 2019 (in millions) Affiliates of NRG $ 905 $ 749 $ 727 Affiliates of Vistra Energy Corp. 410 404 263 |
Revenues by Products and Services | Revenues by Products and Services Year Ended December 31, 2021 2020 2019 Revenues by Products and Services: CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Electric delivery $ 3,158 $ 3,134 $ — $ 2,941 $ 2,911 $ — $ 3,019 $ 2,990 $ — Retail electric sales 559 — — 515 — — 486 — — Wholesale electric sales 46 — — 14 — — 14 — — Retail gas sales 4,157 — 3,069 3,462 — 2,594 3,563 — 2,831 Gas transportation and processing 12 — 12 15 — 15 33 — 33 Energy products and services 420 — 167 471 — 154 449 — 154 Total $ 8,352 $ 3,134 $ 3,248 $ 7,418 $ 2,911 $ 2,763 $ 7,564 $ 2,990 $ 3,018 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The tables below provide supplemental disclosure of cash flow information: 2021 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 489 $ 208 $ 99 $ 471 $ 201 $ 114 $ 436 $ 229 $ 109 Income tax payments (refunds), net (46) 20 4 143 65 4 155 87 7 Non-cash transactions: Accounts payable related to capital expenditures 370 261 103 153 102 69 236 117 86 Fair Value of Energy Transfer Common Units received for Enable Merger 1,672 — — — — — — — — Fair Value of Energy Transfer Series G Preferred Units received for Enable Merger 385 — — — — — — — — ROU assets obtained in exchange for lease liabilities (1) 2 — — 15 1 5 44 1 29 Beneficial conversion feature — — — 32 — — — — — Amortization of beneficial conversion feature — — — (32) — — — — — Capital distribution associated with the Internal Spin (2) — — — — — — — — 28 (1) Includes the transition impact of adoption of ASU 2016-02 Leases as of January 1, 2019. The Registrants elected not to recast comparative periods in the year of adoption as permitted by the standard. (2) The capital distribution in 2019 is the result of the finalization of the previously estimated net deferred tax assets and liabilities distributed as part of the Internal Spin. The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the amount reported in the Statements of Consolidated Cash Flows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents (1) $ 230 $ 214 $ 8 $ 147 $ 139 $ 1 Restricted cash included in Prepaid expenses and other current assets 24 19 — 20 15 — Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows $ 254 $ 233 $ 8 $ 167 $ 154 $ 1 |
Related Party Transactions (H_2
Related Party Transactions (Houston Electric and CERC) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Money Pool Investment and Borrowing | Houston Electric and CERC participate in a money pool through which they can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper. The table below summarizes money pool activity: December 31, 2021 December 31, 2020 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ (512) $ (224) $ (8) $ — Weighted average interest rate 0.34 % 0.34 % 0.24 % 0.24 % (1) Included in Accounts and notes receivable (payable)–affiliated companies in Houston Electric’s and CERC’s Consolidated Balance Sheets. |
Schedule of Related Party Transactions | Houston Electric and CERC affiliate-related net interest income (expense) were as follows: Year Ended December 31, 2021 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Interest income (expense), net (1) $ — $ — $ — $ — $ 18 $ 4 (1) Interest income is included in Other, net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Statements of Consolidated Income. Amounts charged for these services are included primarily in Operation and maintenance expenses: Year Ended December 31, 2021 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 189 $ 216 $ 197 $ 212 $ 177 $ 141 Net affiliate service charges (billings) (7) 7 (16) 16 (8) 8 The table below presents transactions among Houston Electric, CERC and their parent, Utility Holding. Year Ended December 31, 2021 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ — $ — $ 551 $ 80 $ 376 $ 120 Cash contribution from parent 130 180 62 217 590 129 Capital distribution to parent associated with the sale of CES — — — 286 — — Capital distribution to parent associated with the Internal Spin (1) — — — — — 28 Property, plant and equipment from parent (2) — — 36 23 — — (1) The capital distribution in 2019 associated with the Internal Spin is a result of the return to accrual for the periods of CERC’s ownership during 2018. (2) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease cost, included in Operation and maintenance expense on the Registrants’ respective Statements of Consolidated Income, are as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease cost $ 8 $ 1 $ 4 $ 9 $ — $ 5 Short-term lease cost 119 118 — 14 12 — Total lease cost (1) $ 127 $ 119 $ 4 $ 23 $ 12 $ 5 (1) CenterPoint Energy and Houston Electric defer finance lease costs for mobile generation to Regulatory assets for recovery rather than to Depreciation and Amortization in the Statements of Consolidated Income. |
Operating Lease, Lease Income | The components of lease income were as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions) Operating lease income $ 6 $ 1 $ 3 $ 5 $ — $ 2 Variable lease income 1 — — 1 — — Total lease income $ 7 $ 1 $ 3 $ 6 $ — $ 2 |
Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases was as follows: December 31, 2021 December 31, 2020 CenterPoint Energy Houston CERC CenterPoint Energy Houston CERC (in millions, except lease term and discount rate) Assets: Operating ROU assets (1) $ 22 $ 1 $ 12 $ 31 $ 1 $ 19 Finance ROU assets (2) 179 179 — — — — Total leased assets $ 201 $ 180 $ 12 $ 31 $ 1 $ 19 Liabilities: Current operating lease liability (3) $ 6 $ 1 $ 2 $ 6 $ — $ 3 Non-current operating lease liability (4) 17 — 11 26 1 18 Total leased liabilities (5) $ 23 $ 1 $ 13 $ 32 $ 1 $ 21 Weighted-average remaining lease term (in years) - operating leases 6.2 4.1 6.5 6.0 4.0 7.5 Weighted-average discount rate - operating leases 3.10 % 2.86 % 3.20 % 3.14 % 2.59 % 3.36 % Weighted-average remaining lease term (in years) - finance leases 7.5 7.5 — — — — Weighted-average discount rate - finance leases 2.21 % 2.21 % — — — — (1) Reported within Other assets (2) Reported within Property, Plant and Equipment (3) Reported within Current other liabilities (4) Reported within Other liabilities (5) Finance lease liabilities were not material as of December 31, 2021 or 2020 and are reported within Other long-term debt in the Registrants’ respective Consolidated Balance Sheets when applicable. |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2021, maturities of operating lease liabilities were as follows: CenterPoint Houston CERC (in millions) 2022 $ 6 $ 1 $ 3 2023 5 — 2 2024 3 — 2 2025 3 — 2 2026 3 — 2 2027 and beyond 5 — 3 Total lease payments 25 1 14 Less: Interest 2 — 1 Present value of lease liabilities $ 23 $ 1 $ 13 |
Lessor, Operating Lease, Payments to be Received, Maturity | As of December 31, 2021, maturities of undiscounted operating lease payments to be received are as follows: CenterPoint Houston CERC (in millions) 2022 $ 5 $ — $ 3 2023 5 — 3 2024 5 — 3 2025 6 — 3 2026 6 — 4 2027 and beyond 142 — 136 Total lease payments to be received $ 169 $ — $ 152 |
Other Information Related To Leases | Other information related to leases is as follows: Year Ended December 31, 2021 CenterPoint Houston CERC (in millions) Operating cash flows from operating leases included in the measurement of lease liabilities $ 6 $ 1 $ 3 Financing cash flows from finance leases included in the measurement of lease liabilities 179 179 — |
Background (Details)
Background (Details) | Dec. 31, 2021utilitystateregistrant |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of registrants | registrant | 3 |
Number of public utilities held | utility | 3 |
Natural Gas | CERC Corp | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of states in which entity operates | state | 6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |||
LIFO Inventory Amount | $ 101 | $ 92 | |
Cost of replacing inventories carried at LIFO cost less than carrying value | 48 | ||
Interest Expense | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 34 | 27 | $ 36 |
Interest Expense | Indiana | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 16 | 13 | 21 |
Other Income (Expense) | |||
Significant Accounting Policies [Line Items] | |||
AFUDC equity | 28 | 25 | 22 |
Houston Electric | Interest Expense | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 13 | 8 | 8 |
Houston Electric | Other Income (Expense) | |||
Significant Accounting Policies [Line Items] | |||
AFUDC equity | 20 | 14 | 15 |
CERC Corp | |||
Significant Accounting Policies [Line Items] | |||
LIFO Inventory Amount | 56 | 55 | |
Cost of replacing inventories carried at LIFO cost less than carrying value | 0 | ||
CERC Corp | Interest Expense | |||
Significant Accounting Policies [Line Items] | |||
Interest and AFUDC debt | 2 | 3 | 3 |
CERC Corp | Other Income (Expense) | |||
Significant Accounting Policies [Line Items] | |||
AFUDC equity | $ 3 | $ 3 | $ 3 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)MW | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted-average remaining lease term (in years) - finance leases | 7 years 6 months | ||
Finance lease right of use assets, gross | $ 179 | $ 0 | |
Property plant and equipment and finance lease assets, gross | 33,673 | 32,514 | |
Finance lease right of use assets, accumulated amortization | 0 | 0 | |
Property plant and equipment and finance lease assets, accumulated depreciation and amortization | 10,189 | 10,152 | |
Property, Plant and Equipment, net | 23,484 | 22,362 | |
Finance ROU assets | 179 | 0 | |
Property plant and equipment and finance lease assets, net | 23,484 | 22,362 | |
Depreciation and Amortization [Abstract] | |||
Depreciation | 1,024 | 961 | $ 879 |
Amortization of securitized regulatory assets | 213 | 155 | 271 |
Other amortization | 79 | 73 | 75 |
Total | 1,316 | 1,189 | 1,225 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 787 | 539 | |
Accretion expense | 21 | 16 | |
Revisions in estimate | (67) | 232 | |
Ending balance | $ 741 | 787 | 539 |
Houston Electric | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted-average remaining lease term (in years) - finance leases | 7 years 6 months | ||
Finance lease right of use assets, gross | $ 179 | 0 | |
Property plant and equipment and finance lease assets, gross | 15,273 | 13,593 | |
Finance lease right of use assets, accumulated amortization | 0 | 0 | |
Property plant and equipment and finance lease assets, accumulated depreciation and amortization | 4,070 | 3,930 | |
Property, Plant and Equipment, net | 11,203 | 9,663 | |
Finance ROU assets | 179 | 0 | |
Property plant and equipment and finance lease assets, net | 11,203 | 9,663 | |
Depreciation and Amortization [Abstract] | |||
Depreciation | 391 | 368 | 339 |
Amortization of securitized regulatory assets | 213 | 155 | 271 |
Other amortization | 38 | 37 | 38 |
Total | 642 | 560 | 648 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 43 | 42 | |
Accretion expense | 1 | 1 | |
Revisions in estimate | (2) | 0 | |
Ending balance | 42 | 43 | 42 |
CERC Corp | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Property plant and equipment and finance lease assets, gross | 7,878 | 8,972 | |
Property plant and equipment and finance lease assets, accumulated depreciation and amortization | 2,115 | 2,414 | |
Property, Plant and Equipment, net | 5,763 | 6,558 | |
Finance ROU assets | 0 | 0 | |
Property plant and equipment and finance lease assets, net | 5,763 | 6,558 | |
Depreciation and Amortization [Abstract] | |||
Depreciation | 311 | 289 | 277 |
Amortization of securitized regulatory assets | 0 | 0 | 0 |
Other amortization | 15 | 15 | 16 |
Total | 326 | 304 | 293 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | 571 | 325 | |
Accretion expense | 12 | 11 | |
Revisions in estimate | (93) | 235 | |
Ending balance | $ 490 | 571 | $ 325 |
Electric transmission and distribution | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 36 years | ||
Property, Plant and Equipment, Gross | $ 17,156 | 15,225 | |
Accumulated Depreciation & Amortization | 4,658 | 4,785 | |
Property, Plant and Equipment, net | $ 12,498 | 10,440 | |
Electric transmission and distribution | Houston Electric | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 38 years | ||
Property, Plant and Equipment, Gross | $ 13,321 | 11,911 | |
Accumulated Depreciation & Amortization | 3,502 | 3,396 | |
Property, Plant and Equipment, net | $ 9,819 | 8,515 | |
Electric generation | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 26 years | ||
Property, Plant and Equipment, Gross | $ 1,807 | 1,922 | |
Accumulated Depreciation & Amortization | 1,179 | 754 | |
Property, Plant and Equipment, net | $ 628 | 1,168 | |
Natural gas distribution | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 30 years | ||
Property, Plant and Equipment, Gross | $ 13,578 | 14,022 | |
Accumulated Depreciation & Amortization | 3,981 | 4,019 | |
Property, Plant and Equipment, net | $ 9,597 | 10,003 | |
Natural gas distribution | CERC Corp | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 29 years | ||
Property, Plant and Equipment, Gross | $ 7,833 | 8,928 | |
Accumulated Depreciation & Amortization | 2,093 | 2,392 | |
Property, Plant and Equipment, net | $ 5,740 | 6,536 | |
Other property | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 16 years | ||
Property, Plant and Equipment, Gross | $ 953 | 1,345 | |
Accumulated Depreciation & Amortization | 371 | 594 | |
Property, Plant and Equipment, net | $ 582 | 751 | |
Other property | Houston Electric | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 19 years | ||
Property, Plant and Equipment, Gross | $ 1,773 | 1,682 | |
Accumulated Depreciation & Amortization | 568 | 534 | |
Property, Plant and Equipment, net | $ 1,205 | 1,148 | |
Other property | CERC Corp | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Weighted Average Useful Lives | 19 years | ||
Property, Plant and Equipment, Gross | $ 45 | 44 | |
Accumulated Depreciation & Amortization | 22 | 22 | |
Property, Plant and Equipment, net | $ 23 | $ 22 | |
SIGECO | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Number of megawatts (in MW) | MW | 300 | ||
SIGECO's share of cost of Warrick Unit 4 | $ 196 | ||
SIGECO's share of accumulated depreciation of Warrick Unit 4 | $ 154 |
Held for Sale, Divestitures a_3
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) - Held for Sale Narrative (Details) $ in Millions | Apr. 29, 2021USD ($)mi | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 14, 2021USD ($) | Feb. 16, 2021shares |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestitures (Note 4) | $ 22 | $ 1,215 | $ 0 | |||
Miles of pipeline | mi | 17,000 | |||||
Merger exchange ratio | shares | 0.8595 | |||||
CERC Corp | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestitures (Note 4) | 22 | $ 365 | ||||
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestitures (Note 4) | $ 2,150 | |||||
Recovery of costs | $ 425 | |||||
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | CERC Corp | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash payment commitment | $ 22 | |||||
Extinguishment of liability | $ 10 |
Held for Sale, Divestitures a_4
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) - Schedule of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | ||
Total current assets held for sale | $ 2,338 | $ 0 |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||
Total current liabilities held for sale | 562 | 0 |
Non-current assets held for sale | 0 | 782 |
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | ||
Receivables, net | 46 | |
Accrued unbilled revenues | 48 | |
Natural gas inventory | 46 | |
Materials and supplies | 9 | |
Property, plant and equipment, net | 1,314 | |
Goodwill | 398 | |
Investment in unconsolidated affiliate | 0 | |
Regulatory assets | 471 | |
Other | 6 | |
Total current assets held for sale | 2,338 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||
Short term borrowings | 36 | |
Accounts payable | 40 | |
Taxes accrued | 7 | |
Customer deposits | 12 | |
Regulatory liabilities | 365 | |
Other | 102 | |
Total current liabilities held for sale | 562 | |
CERC Corp | ||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | ||
Total current assets held for sale | 2,084 | 0 |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||
Total current liabilities held for sale | 562 | $ 0 |
CERC Corp | Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||
Disposal Group, Including Discontinued Operation, Assets, Current [Abstract] | ||
Receivables, net | 46 | |
Accrued unbilled revenues | 48 | |
Natural gas inventory | 46 | |
Materials and supplies | 9 | |
Property, plant and equipment, net | 1,314 | |
Goodwill | 144 | |
Investment in unconsolidated affiliate | 0 | |
Regulatory assets | 471 | |
Other | 6 | |
Total current assets held for sale | 2,084 | |
Disposal Group, Including Discontinued Operation, Liabilities, Current [Abstract] | ||
Short term borrowings | 36 | |
Accounts payable | 40 | |
Taxes accrued | 7 | |
Customer deposits | 12 | |
Regulatory liabilities | 365 | |
Other | 102 | |
Total current liabilities held for sale | $ 562 |
Held for Sale, Divestitures a_5
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) - Summary of Income (Loss) From Continuing Operations, Before Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | $ 778 | $ 563 | $ 545 |
Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | 78 | 73 | |
CERC Corp | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | 305 | 244 | $ 186 |
CERC Corp | Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income before income taxes | $ 78 | $ 73 |
Held for Sale, Divestitures a_6
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) - Discontinued Operations Narrative (Details) | Dec. 02, 2021USD ($) | Feb. 16, 2021USD ($) | Jun. 01, 2020USD ($) | Apr. 09, 2020USD ($) | Feb. 03, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2021USD ($) | Oct. 31, 2020USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Preferred unit exchange ratio | 0.0265 | |||||||||||
Proceeds from divestitures (Note 4) | $ 22,000,000 | $ 1,215,000,000 | $ 0 | |||||||||
Goodwill impairment | $ 0 | $ 0 | 0 | 185,000,000 | $ 0 | |||||||
OGE | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Payment upon termination of partnership | $ 30,000,000 | |||||||||||
CERC Corp | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from divestitures (Note 4) | 22,000,000 | 365,000,000 | ||||||||||
Enable Midstream Partners | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Cash received | $ 5,000,000 | |||||||||||
Infrastructure Services Disposal Group | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Sales price of outstanding equity interests | $ 850,000,000 | |||||||||||
Proceeds from divestitures (Note 4) | $ 850,000,000 | |||||||||||
Receivable from sale of disposal group | $ 4,000,000 | |||||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | $ 129,000,000 | |||||||||||
Current tax expense (benefit) of cash taxes payable upon sale | 158,000,000 | |||||||||||
Goodwill impairment | 82,000,000 | |||||||||||
Cost to sell | 14,000,000 | |||||||||||
Pre-tax gain on sale | 6,000,000 | |||||||||||
Maximum contractual exposure under Securities Purchase Agreement | 21,000,000 | |||||||||||
Energy Services Disposal Group | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Sales price of outstanding equity interests | $ 400,000,000 | |||||||||||
Proceeds from divestitures (Note 4) | $ 286,000,000 | |||||||||||
Receivable from sale of disposal group | $ 79,000,000 | |||||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | 4,000,000 | |||||||||||
Goodwill impairment | 62,000,000 | |||||||||||
Cost to sell | 6,000,000 | |||||||||||
Current tax expense of cash taxes payable upon sale | 4,000,000 | |||||||||||
Loss from reclassification to held for sale | 31,000,000 | |||||||||||
Energy Services Disposal Group | CERC Corp | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | $ 4,000,000 | |||||||||||
Goodwill impairment | 62,000,000 | |||||||||||
Pre-tax gain on sale | (3,000,000) | |||||||||||
Current tax expense of cash taxes payable upon sale | $ 4,000,000 |
Held for Sale, Divestitures a_7
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) - Summary of Discontinued Operations (Details) $ in Millions | Jun. 01, 2020USD ($) | Apr. 09, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2021state |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Income tax expense (benefit) from discontinued operations | $ 201 | $ (333) | $ 108 | ||||
Equity in (earnings) losses of unconsolidated affiliates | (339) | 1,428 | (230) | ||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Distributions from unconsolidated affiliates | 155 | 113 | 261 | ||||
Gain on Enable Merger | (681) | 0 | 0 | ||||
Proceeds from divestitures (Note 4) | 22 | 1,215 | 0 | ||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | 80 | 42 | ||||
Discontinued Operations | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Income (loss) from discontinued operations before income taxes | (1,391) | 384 | |||||
Income tax expense (benefit) from discontinued operations | (333) | 108 | |||||
Income (loss) from discontinued operations, net | (1,256) | 276 | |||||
Gain (loss) on classification to held for sale, net | (198) | ||||||
Revenues | 1,417 | 4,957 | |||||
Non-utility cost of revenues | 1,158 | 3,906 | |||||
Operation and maintenance | 218 | 782 | |||||
Depreciation and amortization | 62 | ||||||
Equity in (earnings) losses of unconsolidated affiliates | 1,428 | (229) | |||||
Taxes other than income taxes | 4 | 4 | |||||
Goodwill Impairment | 48 | ||||||
Total | 1,380 | 4,802 | |||||
Operating income (loss) | 37 | 155 | |||||
Enable Midstream Partners | Discontinued Operations | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Equity in earnings of unconsolidated affiliate, net | 1,019 | ||||||
Income (loss) from discontinued operations before income taxes | 1,019 | (1,428) | 229 | ||||
Income tax expense (benefit) from discontinued operations | 201 | (354) | 62 | ||||
Income (loss) from discontinued operations, net | 818 | (1,074) | 167 | ||||
Gain (loss) on classification to held for sale, net | 0 | ||||||
Revenues | 0 | 0 | |||||
Non-utility cost of revenues | 0 | 0 | |||||
Operation and maintenance | 0 | 0 | |||||
Depreciation and amortization | 0 | ||||||
Equity in (earnings) losses of unconsolidated affiliates | (339) | 1,428 | (229) | ||||
Taxes other than income taxes | 0 | 0 | |||||
Goodwill Impairment | $ 86 | 0 | |||||
Total | 0 | 0 | |||||
Operating income (loss) | 0 | 0 | |||||
Impairment charge on investment | 1,541 | ||||||
Impairment on equity method investment | 225 | ||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Distributions from unconsolidated affiliates | 155 | 113 | 261 | ||||
Gain on Enable Merger | (681) | ||||||
Payment upon termination of partnership | (49) | ||||||
Proceeds from divestitures (Note 4) | 5 | ||||||
Write-down of natural gas inventory | 0 | 0 | |||||
Capital expenditures | 0 | 0 | |||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 80 | 42 | |||||
Accounts payable related to capital expenditures | 0 | ||||||
Amortization of intangible assets in Non-utility cost of revenues | 0 | ||||||
Depreciation and amortization on assets held for sale | 0 | ||||||
Infrastructure Services Disposal Group | |||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Proceeds from divestitures (Note 4) | $ 850 | ||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||
Pipeline construction and repair services capitalized | 34 | 162 | |||||
Pipeline construction and repair service charges in operations and maintenance expense | 1 | 4 | |||||
Maximum contractual exposure under Securities Purchase Agreement | 21 | ||||||
Infrastructure Services Disposal Group | Discontinued Operations | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Income (loss) from discontinued operations before income taxes | 15 | 115 | |||||
Income tax expense (benefit) from discontinued operations | 24 | 29 | |||||
Income (loss) from discontinued operations, net | (111) | 86 | |||||
Gain (loss) on classification to held for sale, net | (102) | ||||||
Revenues | 250 | 1,190 | |||||
Non-utility cost of revenues | 50 | 309 | |||||
Operation and maintenance | 184 | 714 | |||||
Depreciation and amortization | 50 | ||||||
Equity in (earnings) losses of unconsolidated affiliates | 0 | 0 | |||||
Taxes other than income taxes | 1 | 2 | |||||
Goodwill Impairment | 0 | ||||||
Total | 235 | 1,075 | |||||
Operating income (loss) | 15 | 115 | |||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Distributions from unconsolidated affiliates | 0 | 0 | |||||
Write-down of natural gas inventory | 0 | 0 | |||||
Capital expenditures | 18 | 67 | |||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | 0 | |||||
Accounts payable related to capital expenditures | 0 | ||||||
Amortization of intangible assets in Non-utility cost of revenues | 19 | ||||||
Depreciation and amortization on assets held for sale | 50 | ||||||
Energy Services Disposal Group | |||||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Proceeds from divestitures (Note 4) | $ 286 | ||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||
Transportation revenue | 34 | 101 | |||||
Natural gas expense | 48 | 125 | |||||
Energy Services Disposal Group | Discontinued Operations | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Income (loss) from discontinued operations before income taxes | 22 | 40 | |||||
Income tax expense (benefit) from discontinued operations | (3) | 17 | |||||
Income (loss) from discontinued operations, net | (71) | 23 | |||||
Gain (loss) on classification to held for sale, net | (96) | ||||||
Revenues | 1,167 | 3,767 | |||||
Non-utility cost of revenues | 1,108 | 3,597 | |||||
Operation and maintenance | 34 | 68 | |||||
Depreciation and amortization | 12 | ||||||
Equity in (earnings) losses of unconsolidated affiliates | 0 | 0 | |||||
Taxes other than income taxes | 3 | 2 | |||||
Goodwill Impairment | 48 | ||||||
Total | 1,145 | 3,727 | |||||
Operating income (loss) | 22 | 40 | |||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Distributions from unconsolidated affiliates | 0 | 0 | |||||
Write-down of natural gas inventory | 3 | 4 | |||||
Capital expenditures | 3 | 12 | |||||
Distributions from unconsolidated affiliates in excess of cumulative earnings | 0 | 0 | |||||
Accounts payable related to capital expenditures | 2 | ||||||
Amortization of intangible assets in Non-utility cost of revenues | 0 | ||||||
Depreciation and amortization on assets held for sale | 12 | ||||||
MES | |||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||
Number of states | state | 48 | ||||||
Pre-tax gain on sale | 8 | ||||||
CERC Corp | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Income tax expense (benefit) from discontinued operations | 0 | (2) | 17 | ||||
Income (loss) from discontinued operations, net | 0 | (66) | 23 | ||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Proceeds from divestitures (Note 4) | 22 | 365 | |||||
CERC Corp | Infrastructure Services Disposal Group | |||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||
Pipeline construction and repair services capitalized | 0 | 20 | |||||
Pipeline construction and repair service charges in operations and maintenance expense | 1 | 4 | |||||
CERC Corp | Energy Services Disposal Group | |||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||
Transportation revenue | 34 | 101 | |||||
Natural gas expense | 47 | 124 | |||||
CERC Corp | Energy Services Disposal Group | Discontinued Operations | |||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||
Income (loss) from discontinued operations before income taxes | 22 | 40 | |||||
Income tax expense (benefit) from discontinued operations | (2) | 17 | |||||
Income (loss) from discontinued operations, net | (66) | 23 | |||||
Gain (loss) on classification to held for sale, net | (90) | 0 | |||||
Revenues | 1,167 | 3,767 | |||||
Non-utility cost of revenues | 1,108 | 3,597 | |||||
Operation and maintenance | 34 | 68 | |||||
Depreciation and amortization | 0 | 12 | |||||
Taxes other than income taxes | 3 | 2 | |||||
Goodwill Impairment | 0 | 48 | |||||
Total | 1,145 | 3,727 | |||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||
Write-down of natural gas inventory | 3 | 4 | |||||
Capital expenditures | 3 | 12 | |||||
Accounts payable related to capital expenditures | 0 | 2 | |||||
Depreciation and amortization on assets held for sale | $ 0 | $ 12 | |||||
CERC Corp | MES | |||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||
Pre-tax gain on sale | $ 11 |
Held for Sale, Divestitures a_8
Held for Sale, Divestitures and Mergers (CenterPoint Energy and CERC) - Mergers (Details) - Vectren - USD ($) $ / shares in Units, $ in Millions | Feb. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash paid to acquire Vectren | $ 6,000 | ||
Cash paid per share of Vectren common stock at closing of the Merger | $ 72 | ||
Stub cash dividend (in dollars per share) | $ 0.41145 | ||
Incremental share-based awards expense recorded | $ 37 | ||
Operating Revenue | 2,729 | ||
Net Income | 190 | ||
Transaction costs associated with the Merger | 83 | ||
Cash payments towards outstanding share-based awards | $ 78 | ||
Other non-qualified plans benefit obligations deferred compensation | $ 41 | 41 | |
Severance expense related to the Merger | $ 61 | 102 | |
Operation and maintenance agreements and construction backlog | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Amortization of intangible assets in Non-utility cost of revenues | 24 | ||
Customer relationships and trade names | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Amortization of intangible assets in Non-utility cost of revenues | $ 16 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | $ 8,256 | $ 7,350 | $ 7,511 |
Other | 96 | 68 | 53 |
Total revenues | 8,352 | 7,418 | 7,564 |
Lease Income | 7 | 6 | 6 |
Electric | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 3,726 | 3,451 | 3,507 |
Other | 37 | 19 | 12 |
Total revenues | 3,763 | 3,470 | 3,519 |
Natural Gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 4,281 | 3,586 | 3,714 |
Other | 55 | 45 | 36 |
Total revenues | 4,336 | 3,631 | 3,750 |
Corporate and Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 249 | 313 | 290 |
Other | 4 | 4 | 5 |
Total revenues | 253 | 317 | 295 |
Houston Electric | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 3,117 | 2,896 | 2,984 |
Other | 17 | 15 | 6 |
Total revenues | 3,134 | 2,911 | 2,990 |
CERC Corp | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts | 3,210 | 2,714 | 2,979 |
Other | 38 | 49 | 39 |
Total revenues | 3,248 | 2,763 | 3,018 |
Lease Income | $ 3 | $ 2 | $ 1 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Assets and Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accounts Receivable | |
Opening balance as of December 31, 2020 | $ 604 |
Closing balance as of December 31, 2021 | 627 |
Increase (Decrease) in Accounts Receivable | 23 |
Other Accrued Unbilled Revenues | |
Opening balance as of December 31, 2020 | 505 |
Closing balance as of December 31, 2021 | 513 |
Increase (Decrease) in Other Accrued Unbilled Revenues | 8 |
Contract Assets | |
Opening balance as of December 31, 2020 | 27 |
Closing balance as of December 31, 2021 | 15 |
Increase (Decrease) in Contract with Customer, Asset | (12) |
Contract Liabilities | |
Opening balance as of December 31, 2020 | 18 |
Closing balance as of December 31, 2021 | 16 |
Increase (Decrease) in Contract with Customer, Liability | (2) |
Revenue recognized included in the opening contract liability for the period | 17 |
Houston Electric | |
Accounts Receivable | |
Opening balance as of December 31, 2020 | 225 |
Closing balance as of December 31, 2021 | 225 |
Increase (Decrease) in Accounts Receivable | 0 |
Other Accrued Unbilled Revenues | |
Opening balance as of December 31, 2020 | 113 |
Closing balance as of December 31, 2021 | 127 |
Increase (Decrease) in Other Accrued Unbilled Revenues | 14 |
Contract Liabilities | |
Opening balance as of December 31, 2020 | 3 |
Closing balance as of December 31, 2021 | 4 |
Increase (Decrease) in Contract with Customer, Liability | 1 |
Revenue recognized included in the opening contract liability for the period | 3 |
CERC Corp | |
Accounts Receivable | |
Opening balance as of December 31, 2020 | 214 |
Closing balance as of December 31, 2021 | 223 |
Increase (Decrease) in Accounts Receivable | 9 |
Other Accrued Unbilled Revenues | |
Opening balance as of December 31, 2020 | 261 |
Closing balance as of December 31, 2021 | 247 |
Increase (Decrease) in Other Accrued Unbilled Revenues | $ (14) |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 781 |
Corporate and Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 781 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue expected to be recognized | $ 232 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Corporate and Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue expected to be recognized | $ 232 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | |
Revenue expected to be recognized | $ 549 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Corporate and Other | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | |
Revenue expected to be recognized | $ 549 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Bad Debt Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Bad debt expense | $ 12 | $ 24 | $ 18 |
Houston Electric | |||
Bad debt expense | 0 | 0 | 0 |
CERC Corp | |||
Bad debt expense | $ 11 | $ 18 | $ 14 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (CenterPoint Energy and CERC) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 4,294,000,000 | $ 4,697,000,000 | ||||
Held for Sale | 398,000,000 | |||||
Disposals | 5,000,000 | |||||
Goodwill impairment | $ 0 | $ 0 | 0 | 185,000,000 | $ 0 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 63,000,000 | 68,000,000 | ||||
Accumulated Amortization | (19,000,000) | (18,000,000) | ||||
Net Balance | 44,000,000 | 50,000,000 | ||||
2022 | 6,000,000 | |||||
2023 | 6,000,000 | |||||
2024 | 5,000,000 | |||||
2025 | 5,000,000 | |||||
2026 | 5,000,000 | |||||
Indiana Electric Integrated | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | $ 185,000,000 | 185,000,000 | ||||
Fair value of goodwill | $ 936,000,000 | |||||
Customer Relationships | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 33,000,000 | 33,000,000 | ||||
Accumulated Amortization | (12,000,000) | (8,000,000) | ||||
Net Balance | 21,000,000 | 25,000,000 | ||||
Trade Names | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 16,000,000 | 16,000,000 | ||||
Accumulated Amortization | (5,000,000) | (3,000,000) | ||||
Net Balance | 11,000,000 | 13,000,000 | ||||
Construction backlog | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 0 | 5,000,000 | ||||
Accumulated Amortization | 0 | (5,000,000) | ||||
Net Balance | 0 | 0 | ||||
Operation and maintenance agreements | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 12,000,000 | 12,000,000 | ||||
Accumulated Amortization | (1,000,000) | (1,000,000) | ||||
Net Balance | 11,000,000 | 11,000,000 | ||||
Other | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Gross Carrying Amount | 2,000,000 | 2,000,000 | ||||
Accumulated Amortization | (1,000,000) | (1,000,000) | ||||
Net Balance | 1,000,000 | 1,000,000 | ||||
Electric | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 936,000,000 | 936,000,000 | ||||
Held for Sale | 0 | |||||
Disposals | 0 | |||||
Accumulated goodwill impairment charge | 185,000,000 | |||||
Natural Gas | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 2,920,000,000 | 3,323,000,000 | ||||
Held for Sale | 398,000,000 | |||||
Disposals | 5,000,000 | |||||
Corporate and Other | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 438,000,000 | 438,000,000 | ||||
Held for Sale | 0 | |||||
Disposals | 0 | |||||
CERC Corp | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 611,000,000 | 757,000,000 | ||||
Held for Sale | 144,000,000 | |||||
Disposals | 2,000,000 | |||||
Depreciation and amortization expense | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Amortization of intangible assets in Non-utility cost of revenues | 6,000,000 | 6,000,000 | 5,000,000 | |||
Non-utility cost of revenues | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Amortization of intangible assets in Non-utility cost of revenues | $ 1,000,000 | $ 2,000,000 | 4,000,000 | |||
Vectren | Depreciation and amortization expense | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Amortization of intangible assets in Non-utility cost of revenues | $ 5,000,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 3,716 | $ 2,112 |
Total current regulatory assets | 1,395 | 18 |
Non-current regulatory assets | 2,321 | 2,094 |
Total Regulatory Liabilities | 3,174 | 3,520 |
Total Current Regulatory Liabilities | 21 | 72 |
Total Non-Current Regulatory Liabilities | 3,153 | 3,448 |
Regulatory liabilities related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,389 | 1,484 |
Estimated removal costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,304 | 1,470 |
Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 481 | 566 |
Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total current regulatory assets | 1,256 | |
Future Amounts Recoverable From Ratepayers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 693 | 760 |
Future Amounts Recoverable From Ratepayers | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 412 | 550 |
Future Amounts Recoverable From Ratepayers | Asset retirement obligations & other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 240 | 173 |
Future Amounts Recoverable From Ratepayers | Net deferred income taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 41 | 37 |
Amounts Deferred For Future Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,921 | 339 |
Amounts Deferred For Future Recovery | Gas Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 29 | 9 |
Amounts Deferred For Future Recovery | Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,528 | |
Amounts Deferred For Future Recovery | Cost recovery riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 124 | 221 |
Amounts Deferred For Future Recovery | Storm Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 105 | 36 |
Amounts Deferred For Future Recovery | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 94 | 90 |
Amounts Deferred For Future Recovery | Decoupling Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 25 | 2 |
Amounts Deferred For Future Recovery | COVID-19 incremental costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 23 | 23 |
Amounts Deferred For Future Recovery | Emergency generation costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 21 | |
Amounts Deferred For Future Recovery | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (28) | (42) |
Amounts Currently Recovered In Customer Rates | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,102 | 1,013 |
Amounts Currently Recovered In Customer Rates | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 28 | 37 |
Amounts Currently Recovered In Customer Rates | Gas Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 72 | 7 |
Amounts Currently Recovered In Customer Rates | Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 66 | |
Amounts Currently Recovered In Customer Rates | Storm Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 43 | 55 |
Amounts Currently Recovered In Customer Rates | Tax Cuts and Jobs Act Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 48 | 25 |
Amounts Currently Recovered In Customer Rates | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (171) | (187) |
Amounts Currently Recovered In Customer Rates | Authorized trackers and cost deferrals | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 504 | 332 |
Amounts Currently Recovered In Customer Rates | Securitized regulatory assets | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 420 | 633 |
Amounts Currently Recovered In Customer Rates | Unamortized loss on reacquired debt and hedging | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 92 | 111 |
Amounts Currently Recovered In Customer Rates, Earning Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 558 | |
Amounts Currently Recovered In Customer Rates, Not Earning A Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 175 | |
Remaining weighted average period for which no return on investment during recovery period is provided | 11 years | |
Houston Electric | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 789 | 848 |
Total current regulatory assets | 0 | 0 |
Non-current regulatory assets | 789 | 848 |
Total Regulatory Liabilities | 1,172 | 1,295 |
Total Current Regulatory Liabilities | 20 | 43 |
Total Non-Current Regulatory Liabilities | 1,152 | 1,252 |
Houston Electric | Regulatory liabilities related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 738 | 764 |
Houston Electric | Estimated removal costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 229 | 231 |
Houston Electric | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 205 | 300 |
Houston Electric | Future Amounts Recoverable From Ratepayers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 74 | 64 |
Houston Electric | Future Amounts Recoverable From Ratepayers | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Future Amounts Recoverable From Ratepayers | Asset retirement obligations & other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 45 | 39 |
Houston Electric | Future Amounts Recoverable From Ratepayers | Net deferred income taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 29 | 25 |
Houston Electric | Amounts Deferred For Future Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 188 | 79 |
Houston Electric | Amounts Deferred For Future Recovery | Gas Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Deferred For Future Recovery | Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | |
Houston Electric | Amounts Deferred For Future Recovery | Cost recovery riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Deferred For Future Recovery | Storm Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 105 | 36 |
Houston Electric | Amounts Deferred For Future Recovery | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 57 | 38 |
Houston Electric | Amounts Deferred For Future Recovery | Decoupling Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Deferred For Future Recovery | COVID-19 incremental costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 8 | 5 |
Houston Electric | Amounts Deferred For Future Recovery | Emergency generation costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 21 | |
Houston Electric | Amounts Deferred For Future Recovery | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (3) | 0 |
Houston Electric | Amounts Currently Recovered In Customer Rates | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 527 | 705 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 24 | 31 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Gas Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | |
Houston Electric | Amounts Currently Recovered In Customer Rates | Storm Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 43 | 55 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Tax Cuts and Jobs Act Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 46 | 20 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (97) | (137) |
Houston Electric | Amounts Currently Recovered In Customer Rates | Authorized trackers and cost deferrals | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 24 | 30 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Securitized regulatory assets | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 420 | 633 |
Houston Electric | Amounts Currently Recovered In Customer Rates | Unamortized loss on reacquired debt and hedging | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 67 | 73 |
Houston Electric | Amounts Currently Recovered In Customer Rates, Earning Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 459 | |
Houston Electric | Amounts Currently Recovered In Customer Rates, Not Earning A Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 67 | |
Remaining weighted average period for which no return on investment during recovery period is provided | 23 years | |
CERC Corp | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 1,866 | 238 |
Total current regulatory assets | 1,289 | 18 |
Non-current regulatory assets | 577 | 220 |
Total Regulatory Liabilities | 980 | 1,255 |
Total Current Regulatory Liabilities | 1 | 29 |
Total Non-Current Regulatory Liabilities | 979 | 1,226 |
CERC Corp | Regulatory liabilities related to TCJA | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 400 | 421 |
CERC Corp | Estimated removal costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 452 | 656 |
CERC Corp | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Liabilities | 128 | 178 |
CERC Corp | Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total current regulatory assets | 1,182 | |
CERC Corp | Future Amounts Recoverable From Ratepayers | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 199 | 132 |
CERC Corp | Future Amounts Recoverable From Ratepayers | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 5 | 4 |
CERC Corp | Future Amounts Recoverable From Ratepayers | Asset retirement obligations & other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 192 | 125 |
CERC Corp | Future Amounts Recoverable From Ratepayers | Net deferred income taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 2 | 3 |
CERC Corp | Amounts Deferred For Future Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,556 | 76 |
CERC Corp | Amounts Deferred For Future Recovery | Gas Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 29 | 9 |
CERC Corp | Amounts Deferred For Future Recovery | Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 1,454 | |
CERC Corp | Amounts Deferred For Future Recovery | Cost recovery riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
CERC Corp | Amounts Deferred For Future Recovery | Storm Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
CERC Corp | Amounts Deferred For Future Recovery | Other Regulatory Assets (Liabilities) | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 37 | 52 |
CERC Corp | Amounts Deferred For Future Recovery | Decoupling Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 25 | 2 |
CERC Corp | Amounts Deferred For Future Recovery | COVID-19 incremental costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 15 | 18 |
CERC Corp | Amounts Deferred For Future Recovery | Emergency generation costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | |
CERC Corp | Amounts Deferred For Future Recovery | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (4) | (5) |
CERC Corp | Amounts Currently Recovered In Customer Rates | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 111 | 30 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Benefit obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 4 | 6 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Gas Recovery | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 40 | 7 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Extraordinary Gas Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 66 | |
CERC Corp | Amounts Currently Recovered In Customer Rates | Storm Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Tax Cuts and Jobs Act Costs | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 2 | 5 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Unrecognized equity return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Unrecognized equity return | (12) | (8) |
CERC Corp | Amounts Currently Recovered In Customer Rates | Authorized trackers and cost deferrals | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 11 | 20 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Securitized regulatory assets | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
CERC Corp | Amounts Currently Recovered In Customer Rates | Unamortized loss on reacquired debt and hedging | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 0 | $ 0 |
CERC Corp | Amounts Currently Recovered In Customer Rates, Earning Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | 7 | |
CERC Corp | Amounts Currently Recovered In Customer Rates, Not Earning A Return | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Total Regulatory Assets | $ 69 | |
Remaining weighted average period for which no return on investment during recovery period is provided | 2 years |
Regulatory Matters - Schedule_2
Regulatory Matters - Schedule of Allowed Equity Return Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Public Utilities, General Disclosures [Line Items] | |||
Allowed equity return recognized | $ 40 | $ 31 | $ 45 |
Houston Electric | |||
Public Utilities, General Disclosures [Line Items] | |||
Allowed equity return recognized | 37 | 31 | 45 |
CERC Corp | |||
Public Utilities, General Disclosures [Line Items] | |||
Allowed equity return recognized | $ 1 | $ 0 | $ 0 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 22, 2021 | Nov. 12, 2021 | Dec. 31, 2020 |
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | $ 3,716 | $ 2,112 | ||
Total current regulatory assets | 1,395 | 18 | ||
Non-current regulatory assets | 2,321 | 2,094 | ||
Total Regulatory Liabilities | 3,174 | 3,520 | ||
February 2021 Winter Storm Event | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total current regulatory assets | 1,410 | |||
Non-current regulatory assets | 583 | |||
February 2021 Winter Storm Event | Arkansas and Oklahoma Natural Gas Businesses | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total current regulatory assets | 154 | |||
Non-current regulatory assets | 244 | |||
February 2021 Winter Storm Event | Customer Rate Relief Bond Financing | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | $ 1,100 | |||
February 2021 Winter Storm Event | Authorized trackers and cost deferrals | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | 15 | |||
Natural Gas | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Incremental uncollectible receivables, regulatory asset | 29 | 22 | ||
CERC Corp | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | 1,866 | 238 | ||
Total current regulatory assets | 1,289 | 18 | ||
Non-current regulatory assets | 577 | 220 | ||
Total Regulatory Liabilities | 980 | 1,255 | ||
Incremental uncollectible receivables, regulatory asset | 27 | 19 | ||
CERC Corp | February 2021 Winter Storm Event | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total current regulatory assets | 1,336 | |||
Non-current regulatory assets | 583 | |||
Total Regulatory Liabilities | 398 | |||
CERC Corp | February 2021 Winter Storm Event | Arkansas and Oklahoma Natural Gas Businesses | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total current regulatory assets | 154 | |||
Non-current regulatory assets | 244 | |||
Houston Electric | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | 789 | 848 | ||
Total current regulatory assets | 0 | 0 | ||
Non-current regulatory assets | 789 | 848 | ||
Total Regulatory Liabilities | 1,172 | 1,295 | ||
Houston Electric | February 2021 Winter Storm Event | Authorized trackers and cost deferrals | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | 15 | |||
Department Of Commerce | CERC Corp | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Liabilities | $ 45 | |||
Citizens Utility Board | CERC Corp | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Liabilities | 82 | |||
Attorney General's Office | CERC Corp | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Liabilities | 409 | |||
Attorney General's Office Alternative | CERC Corp | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Liabilities | $ 57 | |||
Public Utility Commission of Texas | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | 8 | |||
COVID-19 ERP regulatory liability | 0 | 6 | ||
Public Utility Commission of Texas | Houston Electric | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Total Regulatory Assets | 8 | |||
COVID-19 ERP regulatory liability | $ 0 | $ 6 |
Stock-Based Incentive Compens_3
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Stock Based Incentive Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Income tax benefit recognized related to LTIPs | $ 11 | $ 9 | $ 7 |
Actual tax benefit realized for tax deductions | $ 4 | $ 5 | $ 12 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Shares | |||
Nonvested, beginning of period (in shares) | 3,900,000,000 | ||
Granted (in shares) | 2,095,000,000 | ||
Forfeited or cancelled (in shares) | (1,017,000,000) | ||
Vested and released to participants (in shares) | (315,000,000) | ||
Nonvested, end of period (in shares) | 4,663,000,000 | 3,900,000,000 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested, beginning of period (in dollars per share) | $ 26.58 | ||
Granted (in dollars per share) | 21.89 | $ 23.82 | $ 31.16 |
Forfeited or cancelled (in dollars per share) | 26.44 | ||
Vested and released to participants (in dollars per share) | 26.79 | ||
Nonvested, end of period (in dollars per share) | $ 24.48 | $ 26.58 | |
Remaining average contractual life of nonvested shares outstanding (in years) | 1 year 2 months 12 days | ||
Aggregate Intrinsic Value | $ 90 | ||
Total intrinsic value of awards received by participants | 7 | $ 9 | $ 36 |
Total grant date fair values of performance and stock awards which vested during the period | $ 8 | $ 9 | $ 20 |
Stock Awards | |||
Shares | |||
Nonvested, beginning of period (in shares) | 1,289,000,000 | ||
Granted (in shares) | 1,609,000,000 | ||
Forfeited or cancelled (in shares) | (91,000,000) | ||
Vested and released to participants (in shares) | (440,000,000) | ||
Nonvested, end of period (in shares) | 2,367,000,000 | 1,289,000,000 | |
Weighted-Average Grant Date Fair Value | |||
Nonvested, beginning of period (in dollars per share) | $ 25.71 | ||
Granted (in dollars per share) | 24.20 | $ 21.53 | $ 31.07 |
Forfeited or cancelled (in dollars per share) | 26.23 | ||
Vested and released to participants (in dollars per share) | 25.26 | ||
Nonvested, end of period (in dollars per share) | $ 24.75 | $ 25.71 | |
Remaining average contractual life of nonvested shares outstanding (in years) | 1 year 4 months 24 days | ||
Aggregate Intrinsic Value | $ 66 | ||
Total intrinsic value of awards received by participants | 11 | $ 12 | $ 15 |
Total grant date fair values of performance and stock awards which vested during the period | 11 | 12 | 9 |
Performance and Stock Awards | |||
Weighted-Average Grant Date Fair Value | |||
Unrecognized compensation cost related to non-vested performance and stock awards | $ 58 | ||
Weighted average period of recognition (in years) | 1 year 8 months 12 days | ||
Operation And Maintenance Expense | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
LTIP compensation expense | $ 48 | $ 38 | $ 28 |
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance under long-term incentive plans (in shares) | 14,000,000 |
Stock-Based Incentive Compens_4
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Pension and Postretirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amounts Recognized in Balance Sheets | |||
Other liabilities — benefit obligations | $ (511) | $ (680) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Amortization of net loss | (7) | (7) | |
Amortization of prior service cost | (1) | 0 | |
Settlement (2) | (4) | 0 | |
Pension Plan | |||
Components of net periodic costs [Abstract] | |||
Service cost | 38 | 43 | |
Interest cost | 59 | 75 | |
Net periodic cost (credit) | $ 69 | $ 49 | $ 93 |
Assumptions used to determine net periodic benefit (income) cost | |||
Expected return on plan assets (as a percent) | 5.00% | 5.00% | |
Change in benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $ 2,507 | $ 2,453 | |
Service cost | 38 | 43 | |
Interest cost | 59 | 75 | |
Benefits paid | (285) | (207) | |
Actuarial (gain) loss | (22) | 143 | |
Plan amendment | 1 | 0 | |
Benefit obligation, end of year | 2,298 | 2,507 | 2,453 |
Change in plan assets [Rollforward] | |||
Fair value of plan assets, beginning of year | 2,135 | 2,005 | |
Employer contributions | 61 | 86 | |
Benefits paid | (285) | (207) | |
Actual investment return | 161 | 251 | |
Fair value of plan assets, end of year | 2,072 | 2,135 | $ 2,005 |
Funded status, end of year | (226) | (372) | |
Amounts Recognized in Balance Sheets | |||
Non-current assets | 6 | 0 | |
Current liabilities — other | (7) | (8) | |
Other liabilities — benefit obligations | (225) | (364) | |
Net liability, end of year | $ (226) | $ (372) | |
Discount rate (as a percent) | 2.80% | 2.45% | |
Rate of increase in compensation levels (as a percent) | 4.95% | 5.05% | |
Interest crediting rate (as a percent) | 2.25% | 2.25% | |
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Accumulated benefit obligation for all defined benefit pension plans | $ 2,278 | $ 2,495 | |
Amounts recognized in accumulated other comprehensive loss | |||
Unrecognized actuarial loss (gain) | 99 | 109 | |
Unrecognized prior service cost | 0 | 0 | |
Net amount recognized in accumulated other comprehensive loss (gain) | 99 | 109 | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net loss (gain) | 1 | ||
Amortization of net loss | (7) | ||
Amortization of prior service cost | 0 | ||
Settlement (2) | (4) | ||
Total recognized in comprehensive income | (10) | ||
Total expense recognized in net periodic cost and other comprehensive income | 59 | ||
Pension Plan | Qualified Plan | |||
Change in plan assets [Rollforward] | |||
Employer contributions | 53 | ||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Accumulated benefit obligation | 2,216 | 2,427 | |
Projected benefit obligation | 2,237 | 2,440 | |
Fair value of plan assets | 2,072 | 2,135 | |
Pension Plan | Nonqualified Plan | |||
Change in plan assets [Rollforward] | |||
Employer contributions | 8 | ||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Accumulated benefit obligation | 62 | 68 | |
Projected benefit obligation | 62 | 68 | |
Fair value of plan assets | $ 0 | $ 0 | |
Pension Plan | CenterPoint Energy | |||
Assumptions used to determine net periodic benefit (income) cost | |||
Discount rate (as a percent) | 2.45% | 3.20% | 4.35% |
Expected return on plan assets (as a percent) | 5.00% | 5.75% | 6.00% |
Rate of increase in compensation levels (as a percent) | 5.05% | 4.95% | 4.60% |
Other Postretirement Benefits Plan | |||
Components of net periodic costs [Abstract] | |||
Service cost | $ 2 | $ 2 | $ 3 |
Interest cost | 9 | 11 | 15 |
Expected return on plan assets | (4) | (5) | (5) |
Amortization of prior service cost | (4) | (4) | (5) |
Net periodic cost (credit) | $ 3 | $ 4 | $ 8 |
Assumptions used to determine net periodic benefit (income) cost | |||
Discount rate (as a percent) | 2.50% | 3.25% | 3.20% |
Expected return on plan assets (as a percent) | 3.20% | 3.95% | 4.60% |
Change in benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $ 366 | $ 356 | |
Service cost | 2 | 2 | $ 3 |
Interest cost | 9 | 11 | 15 |
Participant contributions | 7 | 6 | |
Benefits paid | (21) | (22) | |
Early Retiree Reinsurance Program | 20 | 0 | |
Actuarial (gain) loss | (47) | 13 | |
Plan amendment | 0 | 0 | |
Benefit obligation, end of year | 336 | 366 | 356 |
Change in plan assets [Rollforward] | |||
Fair value of plan assets, beginning of year | 134 | 128 | |
Employer contributions | 7 | 10 | |
Participant contributions | 7 | 6 | |
Benefits paid | (21) | (22) | |
Actual investment return | 5 | 12 | |
Fair value of plan assets, end of year | 132 | 134 | 128 |
Funded status, end of year | (204) | (232) | |
Amounts Recognized in Balance Sheets | |||
Current liabilities — other | (7) | (9) | |
Other liabilities — benefit obligations | (197) | (223) | |
Net liability, end of year | $ (204) | $ (232) | |
Discount rate (as a percent) | 2.85% | 2.50% | |
Expected return on plan assets (as a percent) | 3.22% | 3.20% | |
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Prescription drug cost trend rate assumed for the next year - Pre-65 | 8.00% | 7.50% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | |
Amounts recognized in accumulated other comprehensive loss | |||
Unrecognized actuarial loss (gain) | $ (23) | $ (14) | |
Unrecognized prior service cost | 13 | 7 | |
Net amount recognized in accumulated other comprehensive loss (gain) | (10) | $ (7) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net loss (gain) | (2) | ||
Amortization of net loss | 0 | ||
Amortization of prior service cost | (1) | ||
Settlement (2) | 0 | ||
Total recognized in comprehensive income | (3) | ||
Total expense recognized in net periodic cost and other comprehensive income | $ 0 | ||
Minimum | Other Postretirement Benefits Plan | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Health care cost trend rate assumed for the next year | 6.00% | 5.25% | |
Maximum | Other Postretirement Benefits Plan | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Health care cost trend rate assumed for the next year | 18.71% | 19.70% | |
Houston Electric | |||
Amounts Recognized in Balance Sheets | |||
Other liabilities — benefit obligations | $ (55) | $ (75) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Amortization of net loss | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | |
Settlement (2) | 0 | 0 | |
Houston Electric | Pension Plan | Qualified Plan | |||
Change in plan assets [Rollforward] | |||
Employer contributions | 0 | ||
Houston Electric | Pension Plan | Nonqualified Plan | |||
Change in plan assets [Rollforward] | |||
Employer contributions | 0 | ||
Houston Electric | Other Postretirement Benefits Plan | |||
Components of net periodic costs [Abstract] | |||
Service cost | 0 | 0 | 1 |
Interest cost | 4 | 5 | 7 |
Expected return on plan assets | (3) | (4) | (4) |
Amortization of prior service cost | (5) | (5) | (6) |
Net periodic cost (credit) | $ (4) | $ (4) | $ (2) |
Assumptions used to determine net periodic benefit (income) cost | |||
Discount rate (as a percent) | 2.50% | 3.25% | 3.20% |
Expected return on plan assets (as a percent) | 3.30% | 4.05% | 4.70% |
Change in benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $ 168 | $ 162 | |
Service cost | 0 | 0 | $ 1 |
Interest cost | 4 | 5 | 7 |
Participant contributions | 2 | 2 | |
Benefits paid | (9) | (10) | |
Early Retiree Reinsurance Program | 0 | 0 | |
Actuarial (gain) loss | (22) | 9 | |
Plan amendment | 5 | 0 | |
Benefit obligation, end of year | 148 | 168 | 162 |
Change in plan assets [Rollforward] | |||
Fair value of plan assets, beginning of year | 106 | 101 | |
Employer contributions | 1 | 3 | |
Participant contributions | 2 | 2 | |
Benefits paid | (9) | (10) | |
Actual investment return | 4 | 10 | |
Fair value of plan assets, end of year | 104 | 106 | 101 |
Funded status, end of year | (44) | (62) | |
Amounts Recognized in Balance Sheets | |||
Current liabilities — other | 0 | 0 | |
Other liabilities — benefit obligations | (44) | (62) | |
Net liability, end of year | $ (44) | $ (62) | |
Discount rate (as a percent) | 2.85% | 2.50% | |
Expected return on plan assets (as a percent) | 3.32% | 3.30% | |
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Prescription drug cost trend rate assumed for the next year - Pre-65 | 8.00% | 7.50% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | |
Houston Electric | Minimum | Other Postretirement Benefits Plan | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Health care cost trend rate assumed for the next year | 6.00% | 5.25% | |
Houston Electric | Maximum | Other Postretirement Benefits Plan | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Health care cost trend rate assumed for the next year | 18.71% | 19.70% | |
CERC Corp | |||
Amounts Recognized in Balance Sheets | |||
Other liabilities — benefit obligations | $ (81) | $ (83) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Amortization of net loss | 0 | 0 | |
Amortization of prior service cost | (1) | (1) | |
Settlement (2) | 0 | 0 | |
CERC Corp | Pension Plan | Qualified Plan | |||
Change in plan assets [Rollforward] | |||
Employer contributions | 0 | ||
CERC Corp | Pension Plan | Nonqualified Plan | |||
Change in plan assets [Rollforward] | |||
Employer contributions | 0 | ||
CERC Corp | Other Postretirement Benefits Plan | |||
Components of net periodic costs [Abstract] | |||
Service cost | 1 | 1 | 1 |
Interest cost | 3 | 3 | 5 |
Expected return on plan assets | (1) | (1) | (1) |
Amortization of prior service cost | 1 | 1 | 1 |
Net periodic cost (credit) | $ 4 | $ 4 | $ 6 |
Assumptions used to determine net periodic benefit (income) cost | |||
Discount rate (as a percent) | 2.50% | 3.25% | 3.20% |
Expected return on plan assets (as a percent) | 2.85% | 3.35% | 4.15% |
Change in benefit obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $ 105 | $ 102 | |
Service cost | 1 | 1 | $ 1 |
Interest cost | 3 | 3 | 5 |
Participant contributions | 2 | 2 | |
Benefits paid | (6) | (6) | |
Early Retiree Reinsurance Program | 11 | 0 | |
Actuarial (gain) loss | (11) | 3 | |
Plan amendment | 0 | 0 | |
Benefit obligation, end of year | 105 | 105 | 102 |
Change in plan assets [Rollforward] | |||
Fair value of plan assets, beginning of year | 28 | 27 | |
Employer contributions | 3 | 3 | |
Participant contributions | 2 | 2 | |
Benefits paid | (6) | (6) | |
Actual investment return | 1 | 2 | |
Fair value of plan assets, end of year | 28 | 28 | 27 |
Funded status, end of year | (77) | (77) | |
Amounts Recognized in Balance Sheets | |||
Current liabilities — other | (3) | (3) | |
Other liabilities — benefit obligations | (73) | (74) | |
Net liability, end of year | $ (76) | $ (77) | |
Discount rate (as a percent) | 2.85% | 2.50% | |
Expected return on plan assets (as a percent) | 2.86% | 2.85% | |
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Prescription drug cost trend rate assumed for the next year - Pre-65 | 8.00% | 7.50% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | |
Amounts recognized in accumulated other comprehensive loss | |||
Unrecognized actuarial loss (gain) | $ (18) | $ (12) | |
Unrecognized prior service cost | 12 | 7 | |
Net amount recognized in accumulated other comprehensive loss (gain) | (6) | $ (5) | |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net loss (gain) | 0 | ||
Amortization of net loss | 0 | ||
Amortization of prior service cost | (1) | ||
Settlement (2) | 0 | ||
Total recognized in comprehensive income | (1) | ||
Total expense recognized in net periodic cost and other comprehensive income | $ 3 | ||
CERC Corp | Minimum | Other Postretirement Benefits Plan | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Health care cost trend rate assumed for the next year | 6.00% | 5.25% | |
CERC Corp | Maximum | Other Postretirement Benefits Plan | |||
Pension benefits that have accumulated benefit obligations in excess of plan assets | |||
Health care cost trend rate assumed for the next year | 18.71% | 19.70% | |
Operation And Maintenance Expense | Pension Plan | |||
Components of net periodic costs [Abstract] | |||
Service cost | $ 39 | $ 43 | 40 |
Change in benefit obligation [Roll Forward] | |||
Service cost | 39 | 43 | 40 |
Other Nonoperating Income (Expense) | Pension Plan | |||
Components of net periodic costs [Abstract] | |||
Interest cost | 59 | 75 | 96 |
Expected return on plan assets | (103) | (112) | (105) |
Amortization of prior service cost | 0 | 0 | 9 |
Amortization of net loss | 36 | 41 | 52 |
Settlement cost | 38 | 2 | 2 |
Curtailment gain | 0 | 0 | (1) |
Change in benefit obligation [Roll Forward] | |||
Interest cost | $ 59 | $ 75 | $ 96 |
Stock-Based Incentive Compens_5
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Savings Plan [Abstract] | |||
Number of Common stock held by the savings plan (in shares) | 8,688,841 | ||
Percentage of investment in common stocks (in hundredths) | 8.00% | ||
Defined contribution plan cost | $ 58 | $ 58 | $ 58 |
Postemployment Benefits [Abstract] | |||
Postemployment Benefits, Period Expense | 3 | 1 | 2 |
Benefit expense related to deferred compensation plans | 3 | 4 | 4 |
Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 2,072 | 2,135 | 2,005 |
Obligation to return cash received as collateral from securities lending | (80) | (81) | |
Defined Benefits Plan, Fair Value Of Plan Assets, Excluding Investments Measured at Net Asset Value | $ 1,303 | $ 1,467 | |
Discount rate (as a percent) | 2.80% | 2.45% | |
Contributions in 2021 | $ 61 | $ 86 | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2022 | 166 | ||
2023 | 168 | ||
2024 | 167 | ||
2025 | 167 | ||
2026 | 163 | ||
2027-2031 | 730 | ||
Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2021 | 53 | ||
Expected Minimum Contributions in 2022 | 0 | ||
Pension Plan | Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2021 | 8 | ||
Expected Minimum Contributions in 2022 | 7 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 132 | $ 134 | 128 |
Discount rate (as a percent) | 2.85% | 2.50% | |
Contributions in 2021 | $ 7 | $ 10 | |
Expected Minimum Contributions in 2022 | 8 | ||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2022 | 16 | ||
2023 | 17 | ||
2024 | 18 | ||
2025 | 19 | ||
2026 | 20 | ||
2027-2031 | 103 | ||
Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 400 | 631 | |
Obligation to return cash received as collateral from securities lending | (80) | (81) | |
Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 903 | 836 | |
Obligation to return cash received as collateral from securities lending | 0 | 0 | |
Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Obligation to return cash received as collateral from securities lending | 0 | 0 | |
U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 89 | 76 | |
U.S. equity | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 89 | 76 | |
U.S. equity | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
U.S. equity | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 26 | 29 | |
Cash | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 26 | 29 | |
Cash | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Investment grade or above | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 833 | 767 | |
Investment grade or above | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Investment grade or above | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 833 | 767 | |
Investment grade or above | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash received as collateral from securities lending | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 80 | 81 | |
Cash received as collateral from securities lending | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 80 | 81 | |
Cash received as collateral from securities lending | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Cash received as collateral from securities lending | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
U.S. treasuries and government agencies | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 285 | 225 | |
U.S. treasuries and government agencies | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 285 | 225 | |
U.S. treasuries and government agencies | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
U.S. treasuries and government agencies | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mortgage backed securities | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 7 | 5 | |
Mortgage backed securities | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mortgage backed securities | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 7 | 5 | |
Mortgage backed securities | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Asset backed securities | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 3 | 3 | |
Asset backed securities | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Asset backed securities | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 3 | 3 | |
Asset backed securities | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Municipal bonds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 40 | 43 | |
Municipal bonds | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Municipal bonds | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 40 | 43 | |
Municipal bonds | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 301 | |
Mutual funds | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 133 | $ 134 | |
Mutual funds | International equities | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 14.00% | ||
Mutual funds | International equities | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 8.00% | 7.00% | |
Mutual funds | U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 55.00% | ||
Mutual funds | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 20.00% | 19.00% | |
Mutual funds | Real estate | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 5.00% | ||
Mutual funds | Fixed income | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 27.00% | ||
Mutual funds | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 72.00% | 74.00% | |
Mutual funds | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 0 | $ 301 | |
Mutual funds | Level 1 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 133 | 134 | |
Mutual funds | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Level 2 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Mutual funds | Level 3 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
International government bonds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 20 | 18 | |
International government bonds | Level 1 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
International government bonds | Level 2 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 20 | 18 | |
International government bonds | Level 3 | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Common Collective Trust Funds | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 769 | $ 668 | |
Common Collective Trust Funds | International equities | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 41.00% | 37.00% | |
Common Collective Trust Funds | U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 58.00% | 3.00% | |
Common Collective Trust Funds | Real estate | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 0.00% | 1.00% | |
Common Collective Trust Funds | Fixed income | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 1.00% | 59.00% | |
Benefit Obligation | |||
Postemployment Benefits [Abstract] | |||
Postemployment benefit obligations | $ 8 | $ 8 | |
Other non-qualified plans benefit obligations deferred compensation | 40 | 43 | |
Benefit obligations related to split-dollar life insurance arrangements | $ 29 | 32 | |
Minimum | U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 17.00% | ||
Minimum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13.00% | ||
Minimum | International equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 9.00% | ||
Minimum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 3.00% | ||
Minimum | Real estate | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2.00% | ||
Minimum | Fixed income | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 54.00% | ||
Minimum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 69.00% | ||
Minimum | Cash | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0.00% | ||
Minimum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0.00% | ||
Maximum | U.S. equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 27.00% | ||
Maximum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 23.00% | ||
Maximum | International equity | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 19.00% | ||
Maximum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13.00% | ||
Maximum | Real estate | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 8.00% | ||
Maximum | Fixed income | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 64.00% | ||
Maximum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 79.00% | ||
Maximum | Cash | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2.00% | ||
Maximum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2.00% | ||
Common Stock | CenterPoint Energy | |||
Savings Plan [Abstract] | |||
Maximum limit of account balance in company stock (as a percent) | 25.00% | ||
Houston Electric | |||
Savings Plan [Abstract] | |||
Defined contribution plan cost | $ 20 | 18 | 18 |
Postemployment Benefits [Abstract] | |||
Postemployment Benefits, Period Expense | 1 | 1 | 1 |
Benefit expense related to deferred compensation plans | 0 | 1 | 1 |
Houston Electric | Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2021 | 0 | ||
Expected Minimum Contributions in 2022 | 0 | ||
Houston Electric | Pension Plan | Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2021 | 0 | ||
Expected Minimum Contributions in 2022 | 0 | ||
Houston Electric | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 104 | $ 106 | 101 |
Discount rate (as a percent) | 2.85% | 2.50% | |
Contributions in 2021 | $ 1 | $ 3 | |
Expected Minimum Contributions in 2022 | 1 | ||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2022 | 7 | ||
2023 | 8 | ||
2024 | 9 | ||
2025 | 9 | ||
2026 | 9 | ||
2027-2031 | 48 | ||
Houston Electric | Mutual funds | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 105 | $ 106 | |
Houston Electric | Mutual funds | International equities | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 8.00% | 8.00% | |
Houston Electric | Mutual funds | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 19.00% | 18.00% | |
Houston Electric | Mutual funds | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 73.00% | 74.00% | |
Houston Electric | Mutual funds | Level 1 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 105 | $ 106 | |
Houston Electric | Mutual funds | Level 2 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Houston Electric | Mutual funds | Level 3 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
Houston Electric | Benefit Obligation | |||
Postemployment Benefits [Abstract] | |||
Postemployment benefit obligations | 3 | 3 | |
Other non-qualified plans benefit obligations deferred compensation | 6 | 7 | |
Benefit obligations related to split-dollar life insurance arrangements | $ 1 | 1 | |
Houston Electric | Minimum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13.00% | ||
Houston Electric | Minimum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 3.00% | ||
Houston Electric | Minimum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 69.00% | ||
Houston Electric | Minimum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0.00% | ||
Houston Electric | Maximum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 23.00% | ||
Houston Electric | Maximum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 13.00% | ||
Houston Electric | Maximum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 79.00% | ||
Houston Electric | Maximum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2.00% | ||
CERC Corp | |||
Savings Plan [Abstract] | |||
Defined contribution plan cost | $ 18 | 19 | 18 |
Postemployment Benefits [Abstract] | |||
Postemployment Benefits, Period Expense | 2 | 0 | 1 |
Benefit expense related to deferred compensation plans | 0 | 0 | 0 |
CERC Corp | Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2021 | 0 | ||
Expected Minimum Contributions in 2022 | 0 | ||
CERC Corp | Pension Plan | Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions in 2021 | 0 | ||
Expected Minimum Contributions in 2022 | 0 | ||
CERC Corp | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 28 | $ 28 | $ 27 |
Discount rate (as a percent) | 2.85% | 2.50% | |
Contributions in 2021 | $ 3 | $ 3 | |
Expected Minimum Contributions in 2022 | 3 | ||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2022 | 4 | ||
2023 | 5 | ||
2024 | 5 | ||
2025 | 5 | ||
2026 | 6 | ||
2027-2031 | 30 | ||
CERC Corp | Mutual funds | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 28 | $ 28 | |
CERC Corp | Mutual funds | International equities | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 7.00% | 7.00% | |
CERC Corp | Mutual funds | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 22.00% | 21.00% | |
CERC Corp | Mutual funds | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, actual allocation (as a percent) | 71.00% | 72.00% | |
CERC Corp | Mutual funds | Level 1 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | $ 28 | $ 28 | |
CERC Corp | Mutual funds | Level 2 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
CERC Corp | Mutual funds | Level 3 | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Plan assets, fair value | 0 | 0 | |
CERC Corp | Benefit Obligation | |||
Postemployment Benefits [Abstract] | |||
Postemployment benefit obligations | 5 | 5 | |
Other non-qualified plans benefit obligations deferred compensation | 3 | 2 | |
Benefit obligations related to split-dollar life insurance arrangements | $ 0 | $ 0 | |
CERC Corp | Minimum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 15.00% | ||
CERC Corp | Minimum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2.00% | ||
CERC Corp | Minimum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 68.00% | ||
CERC Corp | Minimum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 0.00% | ||
CERC Corp | Maximum | U.S. equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 25.00% | ||
CERC Corp | Maximum | International equity | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 12.00% | ||
CERC Corp | Maximum | Fixed income | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 78.00% | ||
CERC Corp | Maximum | Cash | Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation (as a percent) | 2.00% |
Stock-Based Incentive Compens_6
Stock-Based Incentive Compensation Plans and Employee Benefit Plans - Change in Control Agreements and Other Employee Matters (Details) $ in Millions | Jul. 21, 2021USD ($) | Dec. 31, 2021salary_severance_benefits |
Concentration Risk [Line Items] | ||
Maximum number of times annual salary included in severance benefits | salary_severance_benefits | 3 | |
Board of Directors Chairman | ||
Concentration Risk [Line Items] | ||
Lump sum cash payment for separation | $ | $ 28 | |
Workforce Subject to Collective Bargaining Arrangements Expiring in May 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 15.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in May 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 2.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in April 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 5.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring December 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 3.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in December 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 3.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in June 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 5.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in July 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring June 2022, Additional | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 3.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in September 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Workforce Subject to Collective Bargaining Arrangements Expiring in October 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 1.00% | |
Workforce Subject to Collective Bargaining Arrangements | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 37.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 54.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in April 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring December 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in December 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in June 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in July 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring June 2022, Additional | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in September 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements Expiring in October 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
Houston Electric | Workforce Subject to Collective Bargaining Arrangements | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 54.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in May 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 3.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in April 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 12.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring December 2023 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in December 2025 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 7.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in June 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 14.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in July 2022 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 1.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring June 2022, Additional | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in September 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements Expiring in October 2021 | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 0.00% | |
CERC Corp | Workforce Subject to Collective Bargaining Arrangements | Employees Subject To Collective Bargaining Agreements | Labor Force Concentration Risk | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 37.00% |
Derivative Instruments - Intere
Derivative Instruments - Interest Rate Hedging and Weather Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Weather hedge, term | 10 years | |
Not Designated as Hedging Instrument, Economic Hedge | Interest rate derivatives | ||
Economic hedge | $ 84 | $ 84 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Derivative Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement Impact of Derivative Activity [Abstract] | |||
Gain (loss) on derivative instruments not designated as hedging instruments | $ 50 | $ (60) | $ (292) |
Derivative, Credit Risk Related Contingent Features [Abstract] | |||
Aggregate fair value of derivatives with credit-risk-related contingent features in a liability position | 14 | 20 | |
Fair value of collateral already posted | 7 | 7 | |
Additional collateral required to be posted if credit risk contingent features triggered (1) | 7 | 3 | |
Gains (Losses) in Other Income (Expense) | Indexed debt securities derivative | |||
Income Statement Impact of Derivative Activity [Abstract] | |||
Gain (loss) on derivative instruments not designated as hedging instruments | 50 | (60) | $ (292) |
Not Designated as Hedging Instrument | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 14 | 0 | |
Derivative Liabilities Fair Value | 917 | 983 | |
Not Designated as Hedging Instrument | Current Assets | Natural gas derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 9 | 0 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Natural gas derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 5 | 0 | |
Derivative Liabilities Fair Value | 0 | 0 | |
Not Designated as Hedging Instrument | Current Liabilities | Natural gas derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | 0 | 3 | |
Not Designated as Hedging Instrument | Current Liabilities | Interest rate derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | 2 | 0 | |
Not Designated as Hedging Instrument | Current Liabilities | Indexed debt securities derivative | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | 903 | 953 | |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Natural gas derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | 0 | 7 | |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest rate derivatives | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Derivative Assets Fair Value | 0 | 0 | |
Derivative Liabilities Fair Value | $ 12 | $ 20 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured On Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Equity securities | $ 1,439 | $ 873 |
Investments, including money market funds | 42 | 43 |
Natural gas derivatives | 14 | 0 |
Total assets | 1,495 | 916 |
Liabilities | ||
Total liabilities | 917 | 983 |
Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 903 | 953 |
Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 14 | 20 |
Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 10 |
Level 1 | ||
Assets | ||
Equity securities | 1,439 | 873 |
Investments, including money market funds | 42 | 43 |
Natural gas derivatives | 0 | 0 |
Total assets | 1,481 | 916 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 1 | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 1 | Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 1 | Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 2 | ||
Assets | ||
Equity securities | 0 | 0 |
Investments, including money market funds | 0 | 0 |
Natural gas derivatives | 14 | 0 |
Total assets | 14 | 0 |
Liabilities | ||
Total liabilities | 917 | 983 |
Level 2 | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 903 | 953 |
Level 2 | Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 14 | 20 |
Level 2 | Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 10 |
Level 3 | ||
Assets | ||
Equity securities | 0 | 0 |
Investments, including money market funds | 0 | 0 |
Natural gas derivatives | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | 0 |
Level 3 | Indexed debt securities derivative | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 3 | Interest rate derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Level 3 | Natural gas derivatives | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Houston Electric | ||
Assets | ||
Investments, including money market funds | 27 | 26 |
Total assets | 27 | 26 |
Houston Electric | Level 1 | ||
Assets | ||
Investments, including money market funds | 27 | 26 |
Total assets | 27 | 26 |
Houston Electric | Level 2 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
Houston Electric | Level 3 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
CERC Corp | ||
Assets | ||
Investments, including money market funds | 14 | 13 |
Total assets | 14 | 13 |
CERC Corp | Level 1 | ||
Assets | ||
Investments, including money market funds | 14 | 13 |
Total assets | 14 | 13 |
CERC Corp | Level 2 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | 0 | 0 |
CERC Corp | Level 3 | ||
Assets | ||
Investments, including money market funds | 0 | 0 |
Total assets | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | Apr. 01, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 185,000,000 | $ 0 | ||
Infrastructure Services Disposal Group | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Goodwill impairment | 82,000,000 | ||||||
Energy Services Disposal Group | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Goodwill impairment | 62,000,000 | ||||||
Indiana Electric Integrated | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Goodwill impairment | $ 185,000,000 | 185,000,000 | |||||
Level 2 | Infrastructure Services Disposal Group | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of disposal group | 864,000,000 | ||||||
Level 2 | Energy Services Disposal Group | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of disposal group | 402,000,000 | ||||||
Enable Midstream Partners | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Reduction of dividend or distribution amount (as a percent) | 50.00% | ||||||
Equity method investment, impairment | 0 | 1,541,000,000 | 0 | ||||
Equity method investment, fair value | 848,000,000 | ||||||
Goodwill impairment | $ 0 | 28,000,000 | $ 86,000,000 | ||||
Enable Midstream Partners | Level 3 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Equity method investment, impairment | $ 1,541,000,000 | ||||||
Equity method investment, fair value | $ 848,000,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 16,086 | $ 13,401 |
Carrying amount | Houston Electric | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 5,495 | 5,019 |
Carrying amount | CERC Corp | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 4,380 | 2,428 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 17,385 | 15,226 |
Fair value | Houston Electric | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 6,230 | 5,957 |
Fair value | CERC Corp | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 4,682 | $ 2,855 |
Unconsolidated Affiliate (Cen_3
Unconsolidated Affiliate (CenterPoint Energy and CERC) - Narrative (Details) - USD ($) $ in Millions | Feb. 16, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | |||||
Cash paid for merger | $ 5 | ||||
Gain on Enable Merger | $ 681 | $ 0 | $ 0 | ||
OGE | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payment upon termination of partnership | $ 30 | ||||
Enable Midstream Partners | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Limited partner ownership interest | 79.20% | ||||
Gain on Enable Merger | 680 | 0 | 0 | ||
Equity method investment, fair value | $ 848 | ||||
Equity method investment, impairment | $ 0 | $ 1,541 | $ 0 | ||
Enable Midstream Partners | Common Units | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on Enable Merger | $ 680 | ||||
Enable Midstream Partners | Series A Preferred Units [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Gain on Enable Merger | $ 1 |
Unconsolidated Affiliate (Cen_4
Unconsolidated Affiliate (CenterPoint Energy and CERC) - Distributions Received from Enable (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Feb. 18, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Distributions from unconsolidated affiliates | $ 155 | $ 113 | $ 261 | |
Total distributions received from Enable | $ 189 | $ 229 | $ 339 | |
Enable series A distribution rate (as a percent) | 0.10 | 0.085 | ||
Enable Midstream Partners | Common Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distribution per share of common units | $ / shares | $ 0.6610 | $ 0.8263 | $ 1.2970 | |
Distributions from unconsolidated affiliates | $ 155 | $ 193 | $ 303 | |
Enable Midstream Partners | Cumulative Preferred Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distribution per share of Series A preferred units | $ / shares | $ 2.2965 | $ 2.5000 | $ 2.5000 | |
Expected cash distribution on Enable's Series A Preferred Units | $ 34 | $ 36 | $ 36 |
Unconsolidated Affiliate (Cen_5
Unconsolidated Affiliate (CenterPoint Energy and CERC) - Schedules of Transactions with Enable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CERC Corp | |||
Schedule of Equity Method Investments [Line Items] | |||
Property, plant and equipment from parent | $ 0 | $ 23 | $ 0 |
Enable Midstream Partners | CERC Corp | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts Receivable, Related Parties | 1 | ||
Natural Gas Expenses | Enable Midstream Partners | |||
Schedule of Equity Method Investments [Line Items] | |||
Property, plant and equipment from parent | 85 | 86 | 86 |
Accounts payable for natural gas purchases from Enable | 9 | ||
Natural Gas Expenses | Enable Midstream Partners | CERC Corp | |||
Schedule of Equity Method Investments [Line Items] | |||
Property, plant and equipment from parent | $ 85 | 86 | $ 86 |
Accounts payable for natural gas purchases from Enable | 9 | ||
Transitional Service | Enable Midstream Partners | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts Receivable, Related Parties | $ 1 |
Unconsolidated Affiliate (Cen_6
Unconsolidated Affiliate (CenterPoint Energy and CERC) - Summarized Consolidated Income (Loss) Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total revenues | $ 8,352,000,000 | $ 7,418,000,000 | $ 7,564,000,000 | ||
Goodwill impairment | $ 0 | $ 0 | 0 | 185,000,000 | 0 |
Income (loss) available to common shareholders - basic | 1,391,000,000 | (949,000,000) | 674,000,000 | ||
Gain on Enable Merger | 681,000,000 | 0 | 0 | ||
Equity in earnings (loss) of unconsolidated affiliates, net | 339,000,000 | (1,428,000,000) | 230,000,000 | ||
Enable Midstream Partners | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenues | 3,466,000,000 | 2,463,000,000 | 2,960,000,000 | ||
Cost of sales, excluding depreciation and amortization | 1,959,000,000 | 965,000,000 | 1,279,000,000 | ||
Depreciation and amortization | 382,000,000 | 420,000,000 | 433,000,000 | ||
Goodwill impairment | 0 | 28,000,000 | 86,000,000 | ||
Operating income | 634,000,000 | 465,000,000 | 569,000,000 | ||
Income (loss) available to common shareholders - basic | 461,000,000 | 52,000,000 | 360,000,000 | ||
CenterPoint Energy’s interest | 248,000,000 | 28,000,000 | 193,000,000 | ||
Basis difference amortization (2) | 92,000,000 | 87,000,000 | 47,000,000 | ||
Loss on dilution, net of proportional basis difference recognition | (1,000,000) | (2,000,000) | (11,000,000) | ||
Impairment of CenterPoint Energy’s equity method investment in Enable | 0 | (1,541,000,000) | 0 | ||
Gain on Enable Merger | 680,000,000 | 0 | 0 | ||
Equity in earnings (loss) of unconsolidated affiliates, net | $ 1,019,000,000 | $ (1,428,000,000) | $ 229,000,000 |
Unconsolidated Affiliate (Cen_7
Unconsolidated Affiliate (CenterPoint Energy and CERC) - Summarized Balance Sheet Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 02, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Current assets | $ 7,355 | $ 2,920 | ||
Current liabilities | 4,287 | 4,825 | ||
Total shareholders’ equity | 9,415 | 8,348 | $ 8,359 | |
Enable Midstream Partners | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Current assets | 381 | $ 594 | ||
Non-current assets | 11,348 | 11,227 | ||
Current liabilities | 582 | 1,254 | ||
Non-current liabilities | 4,052 | 3,281 | ||
Non-controlling interest | 26 | 26 | ||
Preferred equity | 362 | 362 | ||
Accumulated other comprehensive loss | (6) | (1) | ||
Total shareholders’ equity | 6,713 | 6,899 | ||
CenterPoint Energy’s ownership interest in Enable partners’ equity | 3,601 | 3,701 | ||
CenterPoint Energy’s basis difference (2) | (2,819) | (2,732) | ||
Investment in unconsolidated affiliates | 782 | $ 969 | ||
Equity method investment, impairment | $ 0 | $ 1,541 | $ 0 |
Equity Securities and Indexed_3
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Narrative (Details) - USD ($) | Dec. 08, 2021 | Dec. 02, 2021 | May 17, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 16, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Merger exchange ratio | 0.8595 | ||||||
Unrealized gains (loss) on equity securities | $ (52,000,000) | $ 49,000,000 | $ 282,000,000 | ||||
Target Annual Yield On Reference Shares | 2.309% | ||||||
ZENS-Related Securities | $ 1,439,000,000 | 871,000,000 | |||||
AT&T | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Ownership (percentage) | 71.00% | ||||||
Shares expected to be received | 0.24 | ||||||
Energy Transfer Common Units | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Units sold (in shares) | 50,000,000 | ||||||
Enable Midstream Partners | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Merger exchange ratio | 0.8595 | ||||||
Cash received | $ 5,000,000 | ||||||
Enable Midstream Partners | Enable Common Units | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Equity interests received (in shares) | 233,856,623 | ||||||
Enable Midstream Partners | Energy Transfer Common Units | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Equity interests received (in shares) | 200,999,768 | ||||||
Enable Midstream Partners | Energy Transfer Common Units | Series G Preferred Stock | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Liquidation preference | $ 385,000,000 | ||||||
Enable Midstream Partners | Energy Transfer Common Units | Series A Preferred Stock | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Equity interests received (in shares) | 14,520,000 | ||||||
Equity interest received | $ 363,000,000 | ||||||
Enable Midstream Partners | Energy Transfer Common Units | Energy Transfer Series G Preferred Units | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Equity interests received (in shares) | 384,780 | ||||||
ZENS-Related Securities | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
ZENS-Related Securities | 820,000,000 | $ 871,000,000 | $ 822,000,000 | ||||
ZENS debt | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Principal amount of debt issued | 1,000,000,000 | ||||||
Outstanding debt balance | $ 828,000,000 | ||||||
Subordinated note cash exchangeable percentage of fair value | 95.00% | ||||||
ZENS annual interest rate | 2.00% | ||||||
Contingent principal amount of indexed debt securities issued by CenterPoint Energy in September 1999 and outstanding and exchangeable | $ 38,000,000 | ||||||
The cash exchange amount from referenced shares per $1,000 face amount of individual notes | 941 | ||||||
Face amount of each indexed debt security notes issued by CenterPoint Energy in September 1999 | $ 1,000 |
Equity Securities and Indexed_4
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Sale of Equity Securities (Details) - Energy Transfer Common Units - USD ($) $ in Millions | Dec. 13, 2021 | Dec. 10, 2021 | Dec. 08, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | |||
Units sold (in shares) | 100,000,000 | 50,000,000 | |
Proceeds from sale of units | $ 745 | $ 384 | |
Energy Transfer Series G Preferred Units | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Units sold (in shares) | 192,390 | ||
Proceeds from sale of units | $ 191 |
Equity Securities and Indexed_5
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Gain (Loss) On Equity Securities (CenterPoint Energy) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | $ (172) | $ 49 | $ 282 |
AT&T Common | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | (43) | (105) | 108 |
Charter Common | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | (8) | 154 | 174 |
Energy Transfer Common Units | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | (124) | 0 | 0 |
Energy Transfer Series G Preferred Units | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | 2 | 0 | 0 |
Other | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Gain (loss) on equity securities | $ 1 | $ 0 | $ 0 |
Equity Securities and Indexed_6
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Securities Classified as Trading (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying value | $ 1,439 | $ 871 |
AT&T Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 10,212,945 | 10,212,945 |
Carrying value | $ 251 | $ 294 |
Charter Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 872,503 | 872,503 |
Carrying value | $ 569 | $ 577 |
Energy Transfer Common Units | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 50,999,768 | 0 |
Carrying value | $ 420 | $ 0 |
Energy Transfer Series G Preferred Units | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Balance of investment owned (in shares) | 192,390 | 0 |
Carrying value | $ 196 | $ 0 |
Other | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying value | $ 3 | $ 0 |
Equity Securities and Indexed_7
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Schedule of Reference Shares (Details) - ZENS debt - shares | Dec. 31, 2021 | Dec. 31, 2020 |
AT&T Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of shares referenced in exchangeable subordinated note | 0.7185 | 0.7185 |
Charter Common | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Number of shares referenced in exchangeable subordinated note | 0.061382 | 0.061382 |
Equity Securities and Indexed_8
Equity Securities and Indexed Debt Securities (ZENS) (CenterPoint Energy) - Summarized Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Investment in equity securities | $ 1,439 | $ 871 | ||
Indexed debt, net | 10 | 15 | ||
Indexed debt securities derivative | 903 | 953 | ||
Gain (loss) on Indexed Debt Securities | (50) | 60 | $ 292 | |
Gain (loss) on equity securities | (172) | 49 | 282 | |
ZENS-Related Securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Investment in equity securities | 820 | 871 | 822 | $ 540 |
Accretion Of Debt Component Indexed Debt Securities | 0 | 0 | 0 | |
Interest Paid Debt Component Indexed Debt Securities | 0 | 0 | 0 | |
Distribution to ZENS holders | 0 | 0 | 0 | |
Gain (loss) on Indexed Debt Securities | 0 | 0 | 0 | |
Gain (loss) on equity securities | (51) | 49 | 282 | |
Debt Component Of ZENS | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Indexed debt, net | 10 | 15 | 19 | 24 |
Accretion Of Debt Component Indexed Debt Securities | 17 | 17 | 17 | |
Interest Paid Debt Component Indexed Debt Securities | (17) | (16) | (17) | |
Distribution to ZENS holders | (5) | (5) | (5) | |
Gain (loss) on Indexed Debt Securities | 0 | 0 | 0 | |
Gain (loss) on equity securities | 0 | 0 | 0 | |
Derivative Component Of ZENS | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Indexed debt securities derivative | 903 | 953 | 893 | $ 601 |
Accretion Of Debt Component Indexed Debt Securities | 0 | 0 | 0 | |
Interest Paid Debt Component Indexed Debt Securities | 0 | 0 | 0 | |
Distribution to ZENS holders | 0 | 0 | 0 | |
Gain (loss) on Indexed Debt Securities | (50) | 60 | 292 | |
Gain (loss) on equity securities | $ 0 | $ 0 | $ 0 |
Equity (CenterPoint Energy) (De
Equity (CenterPoint Energy) (Details) | May 06, 2020USD ($)$ / sharesshares | Apr. 01, 2020$ / shares | Oct. 01, 2018USD ($)$ / sharesshares | Aug. 22, 2018USD ($)$ / sharesshares | Jul. 31, 2021shares | Dec. 31, 2021USD ($)day$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Jul. 20, 2021shares | May 07, 2021$ / shares |
Cumulative preferred stock, outstanding (in shares) | shares | 800,000 | 2,402,400 | 1,777,500 | |||||||
Preferred stock, value outstanding | $ 790,000,000 | $ 2,363,000,000 | $ 1,740,000,000 | |||||||
Income allocated to preferred shareholders | 95,000,000 | 144,000,000 | 117,000,000 | |||||||
Amortization of beneficial conversion feature | 0 | 32,000,000 | 0 | |||||||
Income allocated to preferred shareholders | 95,000,000 | 176,000,000 | 117,000,000 | |||||||
Preferred stock liquidation preference | 800 | 2,402 | ||||||||
Proceeds from issuance of common stock | 0 | 672,000,000 | 0 | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning Balance | (90,000,000) | (98,000,000) | ||||||||
Other comprehensive loss from unconsolidated affiliates | 3,000,000 | (2,000,000) | ||||||||
Prior service cost (2) | 1,000,000 | 0 | ||||||||
Actuarial losses (1) | 7,000,000 | 7,000,000 | ||||||||
Settlement (2) | 4,000,000 | 0 | ||||||||
Reclassification of deferred loss from cash flow hedges realized in net income | 2,000,000 | 0 | ||||||||
Reclassification of deferred loss from cash flow hedges to regulatory assets (3) | 0 | 19,000,000 | ||||||||
Tax benefit (expense) | (7,000,000) | (4,000,000) | ||||||||
Net current period other comprehensive income (loss) | 26,000,000 | 8,000,000 | 10,000,000 | |||||||
Ending Balance | (64,000,000) | (90,000,000) | (98,000,000) | |||||||
Chief Executive Officer | ||||||||||
Shares authorized for issuance under long-term incentive plans (in shares) | shares | 1,000,000 | |||||||||
Chief Executive Officer | Restricted Stock Units (RSUs) | ||||||||||
RSUs granted (in shares) | shares | 400,000 | |||||||||
Remaining shares available to be awarded (in shares) | shares | 600,000 | |||||||||
Enable Midstream Partners | ||||||||||
Undistributed earnings from equity method investments included in retained earnings | 0 | 0 | ||||||||
Houston Electric | ||||||||||
Amortization of beneficial conversion feature | 0 | 0 | 0 | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning Balance | 0 | (15,000,000) | ||||||||
Other comprehensive loss from unconsolidated affiliates | 0 | 0 | ||||||||
Prior service cost (2) | 0 | 0 | ||||||||
Actuarial losses (1) | 0 | 0 | ||||||||
Settlement (2) | 0 | 0 | ||||||||
Reclassification of deferred loss from cash flow hedges realized in net income | 0 | 0 | ||||||||
Reclassification of deferred loss from cash flow hedges to regulatory assets (3) | 0 | 19,000,000 | ||||||||
Tax benefit (expense) | 0 | (4,000,000) | ||||||||
Net current period other comprehensive income (loss) | 0 | 15,000,000 | (1,000,000) | |||||||
Ending Balance | 0 | 0 | (15,000,000) | |||||||
CERC Corp | ||||||||||
Amortization of beneficial conversion feature | 0 | 0 | 0 | |||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Beginning Balance | 10,000,000 | 10,000,000 | ||||||||
Other comprehensive loss from unconsolidated affiliates | 0 | 0 | ||||||||
Prior service cost (2) | 1,000,000 | 1,000,000 | ||||||||
Actuarial losses (1) | 0 | 0 | ||||||||
Settlement (2) | 0 | 0 | ||||||||
Reclassification of deferred loss from cash flow hedges realized in net income | 0 | 0 | ||||||||
Reclassification of deferred loss from cash flow hedges to regulatory assets (3) | 0 | 0 | ||||||||
Tax benefit (expense) | (1,000,000) | (1,000,000) | ||||||||
Net current period other comprehensive income (loss) | 0 | 0 | 5,000,000 | |||||||
Ending Balance | 10,000,000 | 10,000,000 | $ 10,000,000 | |||||||
Pension and Other Postretirement Plans [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Remeasurement of pension and other postretirement plans | 16,000,000 | (12,000,000) | ||||||||
Pension and Other Postretirement Plans [Member] | Houston Electric | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Remeasurement of pension and other postretirement plans | 0 | 0 | ||||||||
Pension and Other Postretirement Plans [Member] | CERC Corp | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||
Remeasurement of pension and other postretirement plans | $ 0 | $ 0 | ||||||||
120 Days After Conclusion of Review or Appeal [Member] | ||||||||||
Preferred stock redemption price (per share) | $ / shares | $ 1,020 | |||||||||
Common Stock | ||||||||||
Common stock, dividends declared per share (in dollars per share) | $ / shares | 0.6600 | $ 0.9000 | $ 0.8625 | |||||||
Common stock, dividends paid per share (in dollars per share) | $ / shares | $ 0.6500 | 0.7400 | 0.8625 | |||||||
Stock issued (in shares) | shares | 41,977,612 | |||||||||
Common stock issued upon conversion (in shares) | shares | 35,921,441 | |||||||||
Shares authorized for issuance under long-term incentive plans (in shares) | shares | 14,000,000 | |||||||||
Common stock issued per share price | $ / shares | $ 16.08 | |||||||||
Proceeds from issuance of common stock | $ 673,000,000 | |||||||||
Common Stock | Previous Dividend or Distribution | ||||||||||
Common stock, dividends declared per share (in dollars per share) | $ / shares | $ 0.2900 | |||||||||
Common Stock | Revised Dividend or Distribution | ||||||||||
Common stock, dividends declared per share (in dollars per share) | $ / shares | $ 0.1500 | |||||||||
Series A Preferred Stock | ||||||||||
Preferred stock, dividends declared per share (in dollars per share) | $ / shares | $ 61.2500 | 91.8750 | 30.6250 | |||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | 61.2500 | $ 61.2500 | $ 30.6250 | |||||||
Preferred stock liquidation preference (per share) | $ / shares | $ 1,000 | $ 1,000 | ||||||||
Cumulative preferred stock, outstanding (in shares) | shares | 800,000 | 800,000 | 800,000 | |||||||
Preferred stock, value outstanding | $ 790,000,000 | $ 790,000,000 | $ 790,000,000 | |||||||
Income allocated to preferred shareholders | $ 49,000,000 | $ 49,000,000 | $ 49,000,000 | |||||||
Stock issued (in shares) | shares | 800,000 | |||||||||
Proceeds from the issuance of convertible stock | $ 790,000,000 | |||||||||
Preferred stock liquidation preference | $ 800,000,000 | |||||||||
Preferred stock dividend rate | 6.125% | |||||||||
Preferred stock redemption price (per share) | $ / shares | $ 1,000 | |||||||||
Preferred stock convertible threshold (in days) | day | 120 | |||||||||
Series A Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||||
Preferred stock, basis spread (as a percent) | 3.27% | |||||||||
Series A Preferred Stock | 120 Days After Conclusion of Review or Appeal [Member] | ||||||||||
Preferred stock redemption percentage liquidation value | 102.00% | |||||||||
Series B Preferred Stock | ||||||||||
Preferred stock, dividends declared per share (in dollars per share) | $ / shares | $ 35 | $ 87.5000 | $ 52.5000 | |||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | 52.5000 | $ 70 | $ 52.5000 | |||||||
Preferred stock liquidation preference (per share) | $ / shares | $ 1,000 | $ 1,000 | ||||||||
Cumulative preferred stock, outstanding (in shares) | shares | 0 | 977,400 | 977,500 | |||||||
Preferred stock, value outstanding | $ 0 | $ 950,000,000 | $ 950,000,000 | |||||||
Income allocated to preferred shareholders | 46,000,000 | 68,000,000 | 68,000,000 | |||||||
Income allocated to preferred shareholders | $ 95,000,000 | $ 144,000,000 | $ 117,000,000 | |||||||
Stock issued (in shares) | shares | 2,550,000 | |||||||||
Preferred stock liquidation preference | $ 978,000,000 | |||||||||
Preferred stock dividend rate | 7.00% | |||||||||
Conversion rate per share (in shares) | shares | 36.7677 | |||||||||
Preferred stock converted to common stock (in shares) | shares | 977,400 | |||||||||
Series C Preferred Stock | ||||||||||
Preferred stock, dividends declared per share (in dollars per share) | $ / shares | $ 0 | $ 0.6100 | $ 0 | |||||||
Preferred stock, dividends paid per share (in dollars per share) | $ / shares | 0.1600 | $ 0.4500 | $ 0 | |||||||
Preferred stock liquidation preference (per share) | $ / shares | $ 1,000 | $ 1,000 | $ 1,000 | |||||||
Cumulative preferred stock, outstanding (in shares) | shares | 0 | 625,000 | 0 | |||||||
Preferred stock, value outstanding | $ 0 | $ 623,000,000 | $ 0 | |||||||
Income allocated to preferred shareholders | $ 0 | $ 27,000,000 | $ 0 | |||||||
Stock issued (in shares) | shares | 725,000 | |||||||||
Proceeds from the issuance of convertible stock | $ 724,000,000 | |||||||||
Preferred stock converted to common stock (in shares) | shares | 625,000 | |||||||||
Common stock issued upon conversion (in shares) | shares | 40,822,990 | |||||||||
Conversion price (in dollars per share) | $ / shares | $ 15.31 | |||||||||
Depositary Shares | ||||||||||
Stock issued (in shares) | shares | 19,550,000 | |||||||||
Proceeds from the issuance of convertible stock | $ 950,000,000 | |||||||||
Depositary share par value (in dollars per share) | $ / shares | $ 50 |
Short-term Borrowings and Lon_3
Short-term Borrowings and Long-term Debt - Schedule of Debt (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)day | Dec. 31, 2020USD ($) | |
Long-term debt: | ||
Unamortized Issuance Costs | $ (23) | $ (17) |
Unamortized Discount (Premium), Net | (7) | (6) |
Long-term Debt | 15,558 | 11,521 |
Current debt | $ 545 | 1,919 |
Number of days until commercial paper maturity | day | 60 | |
CenterPoint Energy | ||
Long-term debt: | ||
Number of days until commercial paper maturity | day | 60 | |
CERC Corp | ||
Long-term debt: | ||
Unamortized Issuance Costs | $ (15) | (15) |
Unamortized Discount (Premium), Net | (4) | (4) |
Long-term Debt | 4,380 | 2,428 |
Current debt | $ 7 | 24 |
Number of days until commercial paper maturity | day | 30 | |
Houston Electric | ||
Long-term debt: | ||
Unamortized Issuance Costs | $ (36) | (28) |
Unamortized Discount (Premium), Net | (18) | (14) |
Long-term Debt | 4,975 | 4,406 |
Current debt | $ 520 | 613 |
VUHI | ||
Long-term debt: | ||
Number of days until commercial paper maturity | day | 30 | |
Subordinated Debt ZENS Member | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 2.00% | |
Long-term debt: | ||
Long-Term | $ 0 | 0 |
Current | 10 | 15 |
CenterPoint Energy senior notes 0.68% to 4.25% due 2024 to 2049 | ||
Long-term debt: | ||
Long-Term | 3,650 | 2,700 |
Current | $ 0 | 500 |
CenterPoint Energy senior notes 0.68% to 4.25% due 2024 to 2049 | Minimum | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 0.68% | |
CenterPoint Energy senior notes 0.68% to 4.25% due 2024 to 2049 | Maximum | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 4.25% | |
Variable rate term loan | ||
Long-term debt: | ||
Long-Term | $ 0 | 0 |
Current | $ 0 | 700 |
Variable rate term loan | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 0.865% | |
Bonds Pollution Control Due | ||
Long-term debt: | ||
Long-Term | $ 68 | 68 |
Current | $ 0 | 0 |
Bonds Pollution Control Due | CenterPoint Energy | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 5.125% | |
Commercial paper | ||
Long-term debt: | ||
Long-Term | $ 1,400 | 1,078 |
Current | 0 | 0 |
Commercial paper | CERC Corp | ||
Long-term debt: | ||
Long-Term | 899 | 347 |
Commercial paper | VUHI | ||
Long-term debt: | ||
Long-Term | 350 | 92 |
Current | 0 | 0 |
VUHI Senior Notes | CERC Corp | ||
Long-term debt: | ||
Long-Term | 3,500 | 2,100 |
VUHI Senior Notes | VUHI | ||
Long-term debt: | ||
Long-Term | 377 | 377 |
Current | $ 0 | 55 |
VUHI Senior Notes | Minimum | CERC Corp | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 0.62% | |
VUHI Senior Notes | Minimum | VUHI | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 3.72% | |
VUHI Senior Notes | Maximum | CERC Corp | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.625% | |
VUHI Senior Notes | Maximum | VUHI | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.10% | |
Other Debt | ||
Long-term debt: | ||
Long-Term | $ 4 | 6 |
Current | $ 3 | 12 |
First mortgage bonds | Houston Electric | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 9.15% | |
Long-term debt: | ||
Long-Term | $ 0 | 0 |
Current | 0 | 102 |
General mortgage bonds | Houston Electric | ||
Long-term debt: | ||
Long-Term | 4,712 | 3,912 |
Current | $ 300 | 300 |
General mortgage bonds | Minimum | Houston Electric | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 2.25% | |
General mortgage bonds | Maximum | Houston Electric | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.95% | |
System restoration bonds | Houston Electric | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 4.243% | |
Long-term debt: | ||
Long-Term | $ 0 | 69 |
Current | 70 | 66 |
Transition bonds | Houston Electric | ||
Long-term debt: | ||
Long-Term | 317 | 467 |
Current | $ 150 | 145 |
Transition bonds | Maximum | Houston Electric | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 3.028% | |
Senior Notes | IGC | ||
Long-term debt: | ||
Long-Term | $ 96 | 96 |
Current | $ 0 | 0 |
Senior Notes | Minimum | IGC | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.34% | |
Senior Notes | Maximum | IGC | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 7.08% | |
SIGECO first mortgage bonds | ||
Long-term debt: | ||
Long-Term | $ 288 | 293 |
Current | $ 5 | $ 0 |
SIGECO first mortgage bonds | Minimum | SIGECO | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 0.82% | |
SIGECO first mortgage bonds | Maximum | SIGECO | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (as a percent) | 6.72% | |
Third Party AMAs | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Arkansas and Oklahoma Natural Gas Businesses | ||
Long-term debt: | ||
Outstanding obligations related to third party AMAs | $ 36 | |
Third Party AMAs | CERC Corp | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Arkansas and Oklahoma Natural Gas Businesses | ||
Long-term debt: | ||
Outstanding obligations related to third party AMAs | $ 36 |
Short-term Borrowings and Lon_4
Short-term Borrowings and Long-term Debt - Debt Transactions (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2021USD ($)day | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Proceeds from long-term debt | $ 4,493 | $ 799 | $ 2,916 | |
CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term debt | 1,699 | 500 | 0 | |
CERC Corp | Bridge Loan | ||||
Debt Instrument [Line Items] | ||||
Financing commitments | $ 1,700 | |||
Financing commitment term | day | 364 | |||
Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term debt | 1,096 | $ 299 | $ 696 | |
Senior Notes | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | 1,700 | |||
General Mortgage Bonds | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | 1,100 | |||
Senior Note and GMBs | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | 4,500 | |||
CERC Senior notes .70% due 2023 | Senior Notes | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | $ 700 | |||
Debt instrument interest rate (as a percent) | 0.70% | |||
CERC Senior Notes Floating Rate due 2023 | Senior Notes | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | $ 1,000 | |||
CERC Senior Notes Floating Rate due 2023 | Senior Notes | CERC Corp | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on LIBOR (as a percent) | 0.50% | |||
General Mortgage Bonds Due 2031 | General Mortgage Bonds | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | $ 400 | |||
Debt instrument interest rate (as a percent) | 2.35% | |||
General Mortgage Bonds Due 2051 | General Mortgage Bonds | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | $ 700 | |||
Debt instrument interest rate (as a percent) | 3.35% | |||
CNP Senior Note 1.45% due 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | $ 500 | |||
Debt instrument interest rate (as a percent) | 1.45% | |||
CNP Senior Note 2.65% due 2031 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | $ 500 | |||
Debt instrument interest rate (as a percent) | 2.65% | |||
CNP Floating Senior Note | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt issued | $ 700 | |||
CNP Floating Senior Note | Senior Notes | Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on LIBOR (as a percent) | 0.65% | |||
CERC Senior notes .70% and Floating Rate due 2023 | Senior Notes | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term debt | $ 1,690 | |||
General Mortgage Bonds Due 2031 and 2051 | General Mortgage Bonds | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term debt | $ 1,080 | |||
CNP Senior Notes 1.45%, 2.65%, and Floating | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term debt | $ 1,690 |
Short-term Borrowings and Lon_5
Short-term Borrowings and Long-term Debt - Debt Repayments and Redemptions (Details) - USD ($) | Dec. 30, 2021 | Jun. 01, 2021 | May 01, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Jan. 15, 2021 |
Debt Instrument [Line Items] | ||||||
Principal payments | $ 211,000,000 | |||||
Senior Notes | CERC Corp | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | 1,700,000,000 | |||||
CNP Senior Note 3.85% | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt balance | $ 500,000,000 | |||||
Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | 2,707,000,000 | |||||
Long-term Debt | CERC Corp | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | 300,000,000 | |||||
Long-term Debt | Houston Electric | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | 402,000,000 | |||||
3.55% Senior Notes Due December 2021 | Long-term Debt | CERC Corp | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price (as a percent) | 100.00% | |||||
3.55% Senior Notes Due December 2021 | Long-term Debt | Senior Notes | CERC Corp | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 300,000,000 | |||||
Debt instrument interest rate (as a percent) | 3.55% | |||||
9.15% First Mortgage Bonds due 2021 | Long-term Debt | First Mortgage Bonds | Houston Electric | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 102,000,000 | |||||
Debt instrument interest rate (as a percent) | 9.15% | |||||
General Mortgage Bonds Due 2021 | Long-term Debt | Houston Electric | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 300,000,000 | |||||
Debt instrument interest rate (as a percent) | 1.85% | |||||
Debt instrument, redemption price (as a percent) | 100.00% | |||||
CNP Senior Note 3.85% | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price (as a percent) | 100.00% | |||||
CNP Senior Note 3.85% | Long-term Debt | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 250,000,000 | $ 250,000,000 | ||||
Debt instrument interest rate (as a percent) | 3.85% | |||||
Variable rate term loan | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 700,000,000 | |||||
Debt instrument interest rate (as a percent) | 0.76% | |||||
Debt instrument, redemption price (as a percent) | 100.00% | |||||
CNP Senior Note 3.60% | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price (as a percent) | 100.00% | |||||
CNP Senior Note 3.60% | Long-term Debt | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 500,000,000 | |||||
Debt instrument interest rate (as a percent) | 3.60% | |||||
Senior Notes 4.67% | Long-term Debt | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 55,000,000 | |||||
Debt instrument interest rate (as a percent) | 4.67% | |||||
CNP Senior Notes 2.50% | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price (as a percent) | 100.00% | |||||
CNP Senior Notes 2.50% | Long-term Debt | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 500,000,000 | |||||
Debt instrument interest rate (as a percent) | 2.50% |
Short-term Borrowings and Lon_6
Short-term Borrowings and Long-term Debt - Narrative (Details) - USD ($) | Jan. 14, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2021 | Jan. 31, 2021 |
Debt Instrument [Line Items] | ||||||
Gain (loss) on early extinguishment of debt | $ 53,000,000 | $ 2,000,000 | $ 0 | |||
Size of credit facility | 4,000,000,000 | |||||
Third Party AMAs | Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding obligations related to third party AMAs | 36,000,000 | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Loans | 11,000,000 | 11,000,000 | ||||
Parent Company | ||||||
Debt Instrument [Line Items] | ||||||
Size of credit facility | 2,400,000,000 | $ 2,400,000,000 | $ 3,300,000,000 | |||
Parent Company | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Loans | 11,000,000 | 11,000,000 | ||||
Vectren | Maximum | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Loans | 20,000,000 | |||||
SIGECO | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Loans | 1,000,000 | |||||
CERC Corp | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) on early extinguishment of debt | 11,000,000 | 2,000,000 | ||||
Size of credit facility | 900,000,000 | |||||
CERC Corp | Third Party AMAs | Arkansas and Oklahoma Natural Gas Businesses | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding obligations related to third party AMAs | 36,000,000 | |||||
CERC Corp | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Loans | 0 | 0 | ||||
CERC Corp | Senior Notes | CERC Senior Notes Floating Rate due 2023 | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Amount redeemed | $ 425,000,000 | |||||
Debt instrument, redemption price (as a percent) | 100.00% | |||||
Houston Electric | ||||||
Debt Instrument [Line Items] | ||||||
Size of credit facility | 300,000,000 | |||||
Additional first mortgage bonds and general mortgage bonds that could be issued | 4,600,000,000 | |||||
Houston Electric | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Loans | 0 | $ 0 | ||||
Houston Electric | Bonds General Mortgage Due Range 1 | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 4,800,000,000 | |||||
Houston Electric | Bonds Pollution Control Due | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | $ 68,000,000 | |||||
Percentage of property additions | 70.00% | |||||
SIGECO | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of property additions | 60.00% | |||||
Additional debt issuable | $ 1,400,000,000 | |||||
Long-term Debt, Gross | $ 293,000,000 |
Short-term Borrowings and Lon_7
Short-term Borrowings and Long-term Debt - Schedule of Revolving Credit Facilities (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Size of credit facility | $ 4,000,000,000 | |||
Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Size of credit facility | 300,000,000 | |||
CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Size of credit facility | $ 900,000,000 | |||
Line of Credit | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 67.50% | |||
Ratio of indebtedness to net capital | 0.562 | |||
Line of Credit | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 65.00% | |||
Ratio of indebtedness to net capital | 0.606 | |||
Line of Credit | London Interbank Offered Rate (LIBOR) | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Basis spread on LIBOR (as a percent) | 1.375% | |||
Line of Credit | London Interbank Offered Rate (LIBOR) | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Basis spread on LIBOR (as a percent) | 1.25% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Loans | $ 0 | $ 0 | ||
Revolving Credit Facility | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Loans | 0 | 0 | ||
Revolving Credit Facility | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Loans | 0 | 0 | ||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Loans | 11,000,000 | 11,000,000 | ||
Letter of Credit | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Loans | 0 | 0 | ||
Letter of Credit | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Loans | 2,649,000,000 | 1,517,000,000 | ||
Commercial paper | Houston Electric | ||||
Debt Instrument [Line Items] | ||||
Loans | $ 0 | $ 0 | ||
Weighted average interest rate (as a percent) | 0.00% | 0.00% | ||
Commercial paper | CERC Corp | ||||
Debt Instrument [Line Items] | ||||
Loans | $ 899,000,000 | $ 347,000,000 | ||
Weighted average interest rate (as a percent) | 0.26% | 0.23% | ||
Parent Company | ||||
Debt Instrument [Line Items] | ||||
Size of credit facility | $ 2,400,000,000 | $ 2,400,000,000 | $ 3,300,000,000 | |
Parent Company | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 65.00% | |||
Ratio of indebtedness to net capital | 0.618 | |||
Percentage on limitation of debt to total capitalization under covenant amended (in hundredths) | 70.00% | |||
Expected restoration costs | $ 100,000,000 | |||
Consecutive period for system restoration costs to exceed $100 million (in months) | 12 | |||
Parent Company | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on LIBOR (as a percent) | 1.625% | |||
Parent Company | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Loans | $ 0 | $ 0 | ||
Parent Company | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Loans | 11,000,000 | 11,000,000 | ||
Parent Company | Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Loans | $ 1,400,000,000 | $ 1,078,000,000 | ||
Weighted average interest rate (as a percent) | 0.34% | 0.23% | ||
VUHI | ||||
Debt Instrument [Line Items] | ||||
Size of credit facility | $ 400,000,000 | |||
Letters of credit swing line sublimit | $ 20,000,000 | |||
VUHI | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 65.00% | |||
Ratio of indebtedness to net capital | 0.489 | |||
VUHI | Line of Credit | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on LIBOR (as a percent) | 1.25% | |||
VUHI | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Loans | $ 0 | $ 0 | ||
VUHI | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Loans | 0 | 0 | ||
VUHI | Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Loans | $ 350,000,000 | $ 92,000,000 | ||
Weighted average interest rate (as a percent) | 0.21% | 0.22% |
Short-term Borrowings and Lon_8
Short-term Borrowings and Long-term Debt - Schedule of Maturities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Houston Electric | |
Debt Instrument [Line Items] | |
2022 | $ 520 |
2023 | 356 |
2024 | 161 |
2025 | 0 |
2026 | 300 |
CERC Corp | |
Debt Instrument [Line Items] | |
2022 | 0 |
2023 | 1,700 |
2024 | 899 |
2025 | 0 |
2026 | 0 |
Long term Debt Excluding ZENS | |
Debt Instrument [Line Items] | |
2022 | 524 |
2023 | 2,113 |
2024 | 4,283 |
2025 | 51 |
2026 | 860 |
Securitization Bonds | |
Debt Instrument [Line Items] | |
2022 | 220 |
2023 | 156 |
2024 | 161 |
2025 | 0 |
2026 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred income tax expense (benefit): | |||
Total deferred expense (benefit) | $ 213 | $ (429) | $ 69 |
Total income tax expense (benefit) | 110 | 80 | 30 |
Houston Electric | |||
Current income tax expense (benefit): | |||
Federal | 22 | 76 | 84 |
State | 22 | 19 | 20 |
Total current expense (benefit) | 44 | 95 | 104 |
Deferred income tax expense (benefit): | |||
Federal | 31 | (42) | (24) |
State | 1 | 0 | 0 |
Total deferred expense (benefit) | 32 | (42) | (24) |
Total income tax expense (benefit) | 76 | 53 | 80 |
CERC Corp | |||
Deferred income tax expense (benefit): | |||
Total deferred expense (benefit) | 77 | 91 | 7 |
Total income tax expense (benefit) | 51 | 97 | (3) |
Continuing Operations | |||
Current income tax expense (benefit): | |||
Federal | 0 | (36) | (6) |
State | (28) | 32 | 13 |
Total current expense (benefit) | (28) | (4) | 7 |
Deferred income tax expense (benefit): | |||
Federal | 78 | 63 | 48 |
State | 60 | 21 | (25) |
Total deferred expense (benefit) | 138 | 84 | 23 |
Total income tax expense (benefit) | 110 | 80 | 30 |
Continuing Operations | CERC Corp | |||
Current income tax expense (benefit): | |||
State | (26) | 4 | 5 |
Total current expense (benefit) | (26) | 4 | 5 |
Deferred income tax expense (benefit): | |||
Federal | 49 | 26 | 26 |
State | 28 | 67 | (34) |
Total deferred expense (benefit) | 77 | 93 | (8) |
Total income tax expense (benefit) | 51 | 97 | (3) |
Discontinued Operations | |||
Current income tax expense (benefit): | |||
Federal | 91 | 152 | 54 |
State | 35 | 28 | 8 |
Total current expense (benefit) | 126 | 180 | 62 |
Deferred income tax expense (benefit): | |||
Federal | 127 | (422) | 26 |
State | (52) | (91) | 20 |
Total deferred expense (benefit) | 75 | (513) | 46 |
Total income tax expense (benefit) | 201 | (333) | 108 |
Discontinued Operations | CERC Corp | |||
Current income tax expense (benefit): | |||
State | 0 | 0 | 2 |
Total current expense (benefit) | 0 | 0 | 2 |
Deferred income tax expense (benefit): | |||
Federal | 0 | 0 | 13 |
State | 0 | (2) | 2 |
Total deferred expense (benefit) | 0 | (2) | 15 |
Total income tax expense (benefit) | $ 0 | $ (2) | $ 17 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 778 | $ 563 | $ 545 |
Increase (decrease) in tax expense resulting from: | |||
State law change, net of federal income tax | (39) | ||
State valuation allowance, net of federal income tax | (4) | ||
Excess deferred income tax amortization | (76) | (55) | |
Total income tax expense (benefit) | $ 110 | $ 80 | $ 30 |
Houston Electric | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 17.00% | 14.00% | 18.00% |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 457 | $ 387 | $ 436 |
Federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Expected federal income tax expense | $ 96 | $ 81 | $ 92 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 18 | 15 | 16 |
Excess deferred income tax amortization | (41) | (42) | (21) |
Other, net | 3 | (1) | (7) |
Total | (20) | (28) | (12) |
Total income tax expense (benefit) | $ 76 | $ 53 | $ 80 |
Effective tax rate (as a percent) | 17.00% | 14.00% | 18.00% |
CERC Corp | |||
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 305 | $ 244 | $ 186 |
Increase (decrease) in tax expense resulting from: | |||
State valuation allowance, net of federal income tax | (4) | ||
Excess deferred income tax amortization | (16) | (18) | |
Total income tax expense (benefit) | $ 51 | 97 | $ (3) |
CERC Corp | State and Local Jurisdiction | |||
Increase (decrease) in tax expense resulting from: | |||
Reduction in income taxes due to tax reform | $ 4 | ||
Continuing Operations | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 14.00% | 14.00% | 6.00% |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 778 | $ 563 | $ 545 |
Federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Expected federal income tax expense | $ 163 | $ 118 | $ 114 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 63 | 40 | 27 |
State law change, net of federal income tax | 23 | 0 | 33 |
State valuation allowance, net of federal income tax | 15 | (1) | 4 |
Excess deferred income tax amortization | (75) | (76) | (55) |
Goodwill impairment | 0 | 39 | 0 |
Net operating loss carryback | 0 | (37) | 0 |
Other, net | (3) | (5) | (19) |
Total | (53) | (38) | (84) |
Total income tax expense (benefit) | $ 110 | $ 80 | $ 30 |
Effective tax rate (as a percent) | 14.00% | 14.00% | 6.00% |
Operating loss carryback, CARES Act | $ 37 | ||
Continuing Operations | CERC Corp | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 17.00% | 40.00% | (2.00%) |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 305 | $ 244 | $ 186 |
Federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Expected federal income tax expense | $ 64 | $ 51 | $ 39 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 33 | 55 | (15) |
State law change, net of federal income tax | 15 | 0 | 4 |
State valuation allowance, net of federal income tax | 15 | (1) | 4 |
Excess deferred income tax amortization | 16 | 16 | 18 |
Other, net | 0 | 6 | (1) |
Total | (13) | 46 | (42) |
Total income tax expense (benefit) | $ 51 | $ 97 | $ (3) |
Effective tax rate (as a percent) | 17.00% | 40.00% | (2.00%) |
Discontinued Operations | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 20.00% | 21.00% | 28.00% |
Income tax reconciliation [Abstract] | |||
Income before income taxes | $ 1,019 | $ (1,589) | $ 384 |
Federal statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% |
Expected federal income tax expense | $ 214 | $ (334) | $ 81 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 14 | (60) | 9 |
State law change, net of federal income tax | 27 | 0 | (12) |
Goodwill impairment | 0 | 25 | 8 |
Tax impact of sale of Energy Services and Infrastructure Services Disposal Groups | 0 | 30 | 0 |
Other, net | 0 | 6 | (2) |
Total | (13) | 1 | 27 |
Total income tax expense (benefit) | $ 201 | $ (333) | $ 108 |
Effective tax rate (as a percent) | 20.00% | 21.00% | 28.00% |
Discontinued Operations | CERC Corp | |||
Other Tax Carryforward [Line Items] | |||
Effective tax rate (as a percent) | 0.00% | 3.00% | 43.00% |
Income tax reconciliation [Abstract] | |||
Income (loss) before income taxes | $ 0 | $ (68) | $ 40 |
Federal statutory income tax rate (as a percent) | 0.00% | 21.00% | 21.00% |
Expected federal income tax expense | $ 0 | $ (14) | $ 8 |
Increase (decrease) in tax expense resulting from: | |||
State income tax expense, net of federal income tax | 0 | (2) | 3 |
Goodwill impairment | 0 | 10 | 8 |
Other, net | 0 | 4 | (2) |
Total | 0 | 12 | 9 |
Total income tax expense (benefit) | $ 0 | $ (2) | $ 17 |
Effective tax rate (as a percent) | 0.00% | 3.00% | 43.00% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Benefits and compensation | $ 120 | $ 141 |
Regulatory liabilities | 396 | 435 |
Loss and credit carryforwards | 76 | 103 |
Asset retirement obligations | 130 | 152 |
Indexed debt securities derivative | 36 | 47 |
Investment in unconsolidated affiliates | 1 | 0 |
Other | 50 | 52 |
Valuation allowance | (11) | (26) |
Total deferred tax assets | 798 | 904 |
Deferred tax liabilities: | ||
Property, plant and equipment | 2,912 | 2,790 |
Investment in unconsolidated affiliates | 0 | 624 |
Regulatory assets | 741 | 325 |
Investment in ZENS and equity securities related to ZENS | 693 | 649 |
Investment in equity securities | 195 | 0 |
Other | 161 | 119 |
Total deferred tax liabilities | 4,702 | 4,507 |
Net deferred tax liabilities | 3,904 | 3,603 |
Houston Electric | ||
Deferred tax assets: | ||
Benefits and compensation | 13 | 17 |
Regulatory liabilities | 175 | 201 |
Asset retirement obligations | 9 | 9 |
Other | 10 | 9 |
Total deferred tax assets | 207 | 236 |
Deferred tax liabilities: | ||
Property, plant and equipment | 1,215 | 1,159 |
Regulatory assets | 114 | 118 |
Total deferred tax liabilities | 1,329 | 1,277 |
Net deferred tax liabilities | 1,122 | 1,041 |
CERC Corp | ||
Deferred tax assets: | ||
Benefits and compensation | 25 | 28 |
Regulatory liabilities | 139 | 147 |
Loss and credit carryforwards | 571 | 143 |
Asset retirement obligations | 118 | 140 |
Other | 26 | 26 |
Valuation allowance | 0 | (15) |
Total deferred tax assets | 879 | 469 |
Deferred tax liabilities: | ||
Property, plant and equipment | 948 | 916 |
Regulatory assets | 514 | 53 |
Other | 97 | 84 |
Total deferred tax liabilities | 1,559 | 1,053 |
Net deferred tax liabilities | $ 680 | $ 584 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Deferred tax assets, valuation allowance | $ 11 | $ 26 |
Release of valuation allowance | 15 | |
Accrued penalties and interest | 4 | |
Unrecognized tax benefits that would impact effective tax rate | 2 | |
Accrued penalties and interest not included | 1 | |
Net uncertain tax liability released | 6 | |
Reduction due to lapse of applicable statute of limitations | 3 | |
CERC Corp | ||
Business Acquisition [Line Items] | ||
Deferred tax assets, valuation allowance | 0 | $ 15 |
Release of valuation allowance | 15 | |
State and Local Jurisdiction | ||
Business Acquisition [Line Items] | ||
Operating loss carryforwards | 1,300 | |
Deferred tax assets tax credit carryforwards | 7 | |
State and Local Jurisdiction | CERC Corp | ||
Business Acquisition [Line Items] | ||
Operating loss carryforwards | 972 | |
Deferred tax assets tax credit carryforwards | 7 | |
Domestic Tax Authority | CERC Corp | ||
Business Acquisition [Line Items] | ||
Deferred tax assets tax credit carryforwards | $ 2,300 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, excluding interest and penalties: | ||
Balance, beginning of year | $ 7 | $ 8 |
Increases related to tax positions of prior years | 0 | 3 |
Decreases related to tax positions of prior years | (4) | (4) |
Balance, end of year | $ 3 | $ 7 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021USD ($)ashPondgasManufacturingAndStorageSite | Dec. 31, 2020USD ($) | Oct. 27, 2021MW | Feb. 09, 2021MW | Dec. 31, 2019USD ($) | Jul. 31, 2018lawsuit | |
Purchase Obligations | ||||||
Number of surety bond obligations outstanding | 53 | |||||
Performance guarantee obligations outstanding face amount | $ 569 | |||||
Percentage of work yet to be completed on projects with open surety bonds | 30.00% | |||||
Number of warranty obligations outstanding | 35 | |||||
Warranty obligations outstanding face amount | $ 550 | |||||
Energy savings commitments not guaranteed | 1,200 | |||||
Maximum exposure amount | $ 514 | |||||
Number of coal ash ponds owned | ashPond | 3 | |||||
Asset retirement obligation | $ 741 | $ 787 | $ 539 | |||
F.B. Culley | ||||||
Purchase Obligations | ||||||
Number of coal ash ponds owned | ashPond | 2 | |||||
A.B. Brown | ||||||
Purchase Obligations | ||||||
Number of coal ash ponds owned | ashPond | 1 | |||||
Energy Services Disposal Group | ||||||
Purchase Obligations | ||||||
Guarantor obligations | $ 0 | 0 | ||||
Posey Solar | ||||||
Purchase Obligations | ||||||
Solar array generating capacity (in Megawatts) | MW | 200 | 300 | ||||
Indiana Gas Service Territory | ||||||
Purchase Obligations | ||||||
Environmental remediation number of sites with potential remedial responsibility | gasManufacturingAndStorageSite | 26 | |||||
SIGECO | ||||||
Purchase Obligations | ||||||
Environmental remediation number of sites with potential remedial responsibility | gasManufacturingAndStorageSite | 5 | |||||
Vectren Proxy Statement Materially Incomplete Related to Merger | ||||||
Purchase Obligations | ||||||
Number of pending claims | lawsuit | 7 | |||||
CERC Corp | ||||||
Purchase Obligations | ||||||
Asset retirement obligation | $ 490 | 571 | $ 325 | |||
CERC Corp | Shell Energy Solutions America | ||||||
Purchase Obligations | ||||||
Maximum payment receivable | $ 40 | |||||
CERC Corp | Energy Services Disposal Group | ||||||
Purchase Obligations | ||||||
Exposure period after closing | 90 days | |||||
Exposure period until fee increases | 3 months | |||||
Guarantor obligations | $ 0 | 0 | ||||
Indiana Electric | ||||||
Purchase Obligations | ||||||
Asset retirement obligation | 90 | |||||
Indiana Electric | Minimum | ||||||
Purchase Obligations | ||||||
Estimated capital expenditure to clean ash ponds | 60 | |||||
Indiana Electric | Maximum | ||||||
Purchase Obligations | ||||||
Estimated capital expenditure to clean ash ponds | $ 80 | |||||
Energy Services Disposal Group | CERC Corp | ||||||
Purchase Obligations | ||||||
Annualized fee received for retained CES obligation guarantees | 3.00% | |||||
Quarterly increase of fee received for retained CES guarantee exposure | 1.00% | |||||
Estimated remaining exposure | $ 23 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Natural Gas and Coal Supply | |
Purchase Obligations | |
2022 | $ 560 |
2023 | 444 |
2024 | 378 |
2025 | 318 |
2026 | 254 |
2027 and beyond | 1,586 |
Natural Gas and Coal Supply | CERC Corp | |
Purchase Obligations | |
2022 | 322 |
2023 | 253 |
2024 | 247 |
2025 | 206 |
2026 | 176 |
2027 and beyond | 1,282 |
Technology Hardware and Software | |
Purchase Obligations | |
2022 | 66 |
2023 | 500 |
2024 | 178 |
2025 | 30 |
2026 | 29 |
2027 and beyond | $ 596 |
Technology Hardware and Software | Minimum | Capital Addition Purchase Commitments | |
Purchase Obligations | |
Purchase obligation term | 15 years |
Technology Hardware and Software | Maximum | Capital Addition Purchase Commitments | |
Purchase Obligations | |
Purchase obligation term | 25 years |
Commitments and Contingencies_3
Commitments and Contingencies - Estimated Range of Possible Remediation Costs (Details) - Minnesota and Indiana Gas Service Territories $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Loss Contingencies [Line Items] | |
Liability recorded for remediation of Minnesota sites | $ 16 |
Minimum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 11 |
Years to resolve contingency | 5 years |
Maximum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 58 |
Years to resolve contingency | 50 years |
CERC Corp | |
Loss Contingencies [Line Items] | |
Liability recorded for remediation of Minnesota sites | $ 11 |
CERC Corp | Minimum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 8 |
Years to resolve contingency | 30 years |
CERC Corp | Maximum | |
Loss Contingencies [Line Items] | |
Site Contingency Loss Exposure | $ 36 |
Years to resolve contingency | 50 years |
Earnings Per Share (CenterPoi_3
Earnings Per Share (CenterPoint Energy) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Recognition of beneficial conversion feature | $ 0 | $ 32 | $ 0 |
Numerator: | |||
Income (loss) from continuing operations | 668 | 483 | 515 |
Less: Preferred stock dividend requirement | 95 | 176 | 117 |
Less: Amortization of beneficial conversion feature | 0 | 32 | 0 |
Less: Undistributed earnings allocated to preferred shareholders | 0 | 0 | 0 |
Income (loss) available to common shareholders from continuing operations - basic | 573 | 307 | 398 |
Income (loss) available to common shareholders from continuing operations - diluted | 573 | 307 | 398 |
Income (loss) available to common shareholders from discontinued operations - basic | 818 | (1,256) | 276 |
Income (loss) available to common shareholders from discontinued operations - diluted | 818 | (1,256) | 276 |
Income (loss) available to common shareholders - basic | 1,391 | (949) | 674 |
Income (loss) available to common shareholders - diluted | $ 1,391 | $ (949) | $ 674 |
Denominator: | |||
Weighted average common shares outstanding - basic | 592,933 | 531,031 | 502,050 |
Weighted average common shares outstanding - diluted | 609,938 | 531,031 | 505,157 |
Earnings (loss) per common share: | |||
Basic earnings per common share - continuing operations (in dollars per share) | $ 0.97 | $ 0.58 | $ 0.79 |
Basic earnings (loss) per common share - discontinued operations (in dollars per share) | 1.38 | (2.37) | 0.55 |
Basic Earnings (Loss) Per Common Share (in dollars per share) | 2.35 | (1.79) | 1.34 |
Earnings Per Share, Diluted [Abstract] | |||
Diluted earnings per common share - continuing operations (in dollars per share) | 0.94 | 0.58 | 0.79 |
Diluted earnings (loss) per common share - discontinued operations (in dollars per share) | 1.34 | (2.37) | 0.54 |
Diluted Earnings (Loss) Per Common Share (in dollars per share) | $ 2.28 | $ (1.79) | $ 1.33 |
Restricted stock | |||
Denominator: | |||
Restricted stock | 5,181 | 0 | 3,107 |
Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: | |||
Amount of antidilutive securities excluded from computation of earnings per share | 0 | 3,690 | 0 |
Series B Preferred Stock | |||
Numerator: | |||
Less: Preferred stock dividend requirement | $ 95 | $ 144 | $ 117 |
Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: | |||
Amount of antidilutive securities excluded from computation of earnings per share | 23,906 | 35,922 | 34,354 |
Series C Preferred Stock | |||
Denominator: | |||
Preferred Stock | 11,824 | 0 | 0 |
Anti-dilutive Incremental Shares Excluded from Denominator for Diluted Earnings (Loss) Computation: | |||
Amount of antidilutive securities excluded from computation of earnings per share | 0 | 23,807 | 0 |
Reportable Segments - Financial
Reportable Segments - Financial Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 8,352 | $ 7,418 | $ 7,564 |
Depreciation and Amortization | 1,316 | 1,189 | 1,225 |
Interest Expense | (508) | (501) | (528) |
Income Tax Expense (Benefit) | 110 | 80 | 30 |
Net income (loss) | 1,486 | (773) | 791 |
Total Assets | 37,679 | 33,471 | |
Expenditures for Long-Lived Assets | 3,399 | 2,536 | 2,587 |
Total Regulatory Assets | 3,716 | 2,112 | |
Interest income from securitization bonds | 1 | 1 | 5 |
Continuing Operations | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 8,352 | 7,418 | 7,564 |
Depreciation and Amortization | 1,316 | 1,189 | 1,225 |
Interest income | 3 | 4 | 22 |
Interest Expense | (529) | (529) | (567) |
Income Tax Expense (Benefit) | 110 | 80 | 30 |
Income (loss) from continuing operations | 668 | 483 | 515 |
Total Assets | 35,341 | 32,689 | |
Expenditures for Long-Lived Assets | 3,228 | 2,515 | 2,508 |
Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Income Tax Expense (Benefit) | 201 | (333) | 108 |
Income (loss) from discontinued operations, net | 818 | (1,256) | 276 |
Total Assets | 2,338 | 782 | |
Expenditures for Long-Lived Assets | 171 | 21 | 79 |
Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,763 | 3,470 | 3,519 |
Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,336 | 3,631 | 3,750 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 253 | 317 | 295 |
Operating Segments | Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,763 | 3,470 | 3,519 |
Depreciation and Amortization | 756 | 670 | 746 |
Interest income | 0 | 3 | 27 |
Interest Expense | (226) | (220) | (225) |
Income Tax Expense (Benefit) | 95 | 72 | 96 |
Net income (loss) | 475 | 230 | 419 |
Total Assets | 16,439 | 14,516 | |
Expenditures for Long-Lived Assets | 2,008 | 1,281 | 1,216 |
Operating Segments | Natural Gas | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,336 | 3,631 | 3,750 |
Depreciation and Amortization | 502 | 473 | 439 |
Interest income | 1 | 8 | 6 |
Interest Expense | (141) | (153) | (144) |
Income Tax Expense (Benefit) | 80 | 125 | 2 |
Net income (loss) | 403 | 278 | 251 |
Total Assets | 16,153 | 15,041 | |
Expenditures for Long-Lived Assets | 1,178 | 1,139 | 1,098 |
Operating Segments | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 253 | 317 | 295 |
Depreciation and Amortization | 58 | 46 | 40 |
Interest income | 118 | 104 | 134 |
Interest Expense | (278) | (267) | (343) |
Income Tax Expense (Benefit) | (65) | (117) | (68) |
Net income (loss) | (210) | (25) | (155) |
Total Assets | 2,749 | 3,132 | |
Expenditures for Long-Lived Assets | 42 | 95 | 194 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 |
Interest income | (116) | (111) | (145) |
Interest Expense | 116 | 111 | 145 |
Income Tax Expense (Benefit) | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | $ 0 |
Benefit obligations | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total Regulatory Assets | $ 427 | $ 540 |
Reportable Segments - Revenues
Reportable Segments - Revenues From Major External Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 8,352 | $ 7,418 | $ 7,564 |
Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,134 | 2,911 | 2,990 |
Affiliates of NRG | Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 905 | 749 | 727 |
Affiliates of Vistra Energy Corp. | Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 410 | $ 404 | $ 263 |
Reportable Segments - Revenue_2
Reportable Segments - Revenues by Products and Services (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 8,352 | $ 7,418 | $ 7,564 |
CenterPoint Energy | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 8,352 | 7,418 | 7,564 |
CenterPoint Energy | Electric delivery | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,158 | 2,941 | 3,019 |
CenterPoint Energy | Retail electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 559 | 515 | 486 |
CenterPoint Energy | Wholesale electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 46 | 14 | 14 |
CenterPoint Energy | Retail gas sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 4,157 | 3,462 | 3,563 |
CenterPoint Energy | Gas transportation and processing | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 12 | 15 | 33 |
CenterPoint Energy | Energy products and services | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 420 | 471 | 449 |
Houston Electric | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,134 | 2,911 | 2,990 |
Houston Electric | Electric delivery | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,134 | 2,911 | 2,990 |
Houston Electric | Retail electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Wholesale electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Retail gas sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Gas transportation and processing | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
Houston Electric | Energy products and services | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,248 | 2,763 | 3,018 |
CERC Corp | Electric delivery | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | Retail electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | Wholesale electric sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 0 | 0 | 0 |
CERC Corp | Retail gas sales | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 3,069 | 2,594 | 2,831 |
CERC Corp | Gas transportation and processing | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 12 | 15 | 33 |
CERC Corp | Energy products and services | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | $ 167 | $ 154 | $ 154 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | $ 489 | $ 471 | $ 436 | |
Income taxes (refunds), net | (46) | 143 | 155 | |
Accounts payable related to capital expenditures | 370 | 153 | 236 | |
ROU assets obtained in exchange for lease liabilities | 2 | 15 | 44 | |
Recognition of beneficial conversion feature | 0 | 32 | 0 | |
Amortization of beneficial conversion feature | 0 | (32) | 0 | |
Capital distribution associated with the Internal Spin | 0 | 0 | 0 | |
Cash and cash equivalents | 230 | 147 | ||
Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows | 254 | 167 | 271 | $ 4,278 |
Energy Transfer Common Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 1,672 | 0 | 0 | |
Energy Transfer Series G Preferred Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 385 | 0 | 0 | |
Prepaid Expenses and Other Current Assets | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Restricted cash | 24 | 20 | ||
Houston Electric | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | 208 | 201 | 229 | |
Income taxes (refunds), net | 20 | 65 | 87 | |
Accounts payable related to capital expenditures | 261 | 102 | 117 | |
Fair value of units received | 0 | 0 | 0 | |
ROU assets obtained in exchange for lease liabilities | 0 | 1 | 1 | |
Recognition of beneficial conversion feature | 0 | 0 | 0 | |
Amortization of beneficial conversion feature | 0 | 0 | 0 | |
Capital distribution associated with the Internal Spin | 0 | 0 | 0 | |
Cash and cash equivalents | 214 | 139 | ||
Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows | 233 | 154 | 235 | 370 |
Houston Electric | Energy Transfer Common Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | 0 | |
Houston Electric | Energy Transfer Series G Preferred Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | 0 | |
Houston Electric | Prepaid Expenses and Other Current Assets | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Restricted cash | 19 | 15 | ||
CERC Corp | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Interest, net of capitalized interest | 99 | 114 | 109 | |
Income taxes (refunds), net | 4 | 4 | 7 | |
Accounts payable related to capital expenditures | 103 | 69 | 86 | |
Fair value of units received | 0 | 0 | 28 | |
ROU assets obtained in exchange for lease liabilities | 0 | 5 | 29 | |
Recognition of beneficial conversion feature | 0 | 0 | 0 | |
Amortization of beneficial conversion feature | 0 | 0 | 0 | |
Capital distribution associated with the Internal Spin | 0 | 0 | 28 | |
Cash and cash equivalents | 8 | 1 | ||
Total cash, cash equivalents and restricted cash shown in Statements of Consolidated Cash Flows | 8 | 1 | 2 | $ 25 |
CERC Corp | Energy Transfer Common Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | 0 | |
CERC Corp | Energy Transfer Series G Preferred Units | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fair value of units received | 0 | 0 | $ 0 | |
CERC Corp | Prepaid Expenses and Other Current Assets | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Restricted cash | 0 | 0 | ||
Bond Companies | Houston Electric | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 92 | $ 139 |
Related Party Transactions (H_3
Related Party Transactions (Houston Electric and CERC) - Schedule of Money Pool Investments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Houston Electric | Investments [Member] | ||
Related Party Transaction [Line Items] | ||
Weighted average interest rate | 0.34% | 0.24% |
CERC Corp | Investments [Member] | ||
Related Party Transaction [Line Items] | ||
Weighted average interest rate | 0.34% | 0.24% |
Accounts and notes receivable (payable) - affiliate companies | Houston Electric | ||
Related Party Transaction [Line Items] | ||
Money pool investments (borrowings) | $ (512) | $ (8) |
Accounts and notes receivable (payable) - affiliate companies | CERC Corp | ||
Related Party Transaction [Line Items] | ||
Money pool investments (borrowings) | $ (224) | $ 0 |
Related Party Transactions (H_4
Related Party Transactions (Houston Electric and CERC) - Schedule of Affiliated-Related Net Interest Income (Expense) (Details) - Other Nonoperating Income (Expense) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Houston Electric | |||
Related Party Transaction [Line Items] | |||
Interest income (expense), net | $ 0 | $ 0 | $ 18 |
CERC Corp | |||
Related Party Transaction [Line Items] | |||
Interest income (expense), net | $ 0 | $ 0 | $ 4 |
Related Party Transactions (H_5
Related Party Transactions (Houston Electric and CERC) - Schedule of Amounts Charged For Services (Details) - Operation And Maintenance Expense - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Houston Electric | |||
Related Party Transaction [Line Items] | |||
Net affiliate service charges (billings) | $ (7) | $ (16) | $ (8) |
CERC Corp | |||
Related Party Transaction [Line Items] | |||
Net affiliate service charges (billings) | 7 | 16 | 8 |
CenterPoint Energy | Houston Electric | |||
Related Party Transaction [Line Items] | |||
Corporate service charges | 189 | 197 | 177 |
CenterPoint Energy | CERC Corp | |||
Related Party Transaction [Line Items] | |||
Corporate service charges | $ 216 | $ 212 | $ 141 |
Related Party Transactions (H_6
Related Party Transactions (Houston Electric and CERC) - Schedule of Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Houston Electric | |||
Related Party Transaction [Line Items] | |||
Cash dividends paid to parent | $ 0 | $ 551 | $ 376 |
Capital distribution | 0 | 0 | 0 |
Property, plant and equipment from parent | 0 | 36 | 0 |
Houston Electric | Discontinued Operations | |||
Related Party Transaction [Line Items] | |||
Capital distribution | 0 | 0 | 0 |
Houston Electric | Additional Paid-in-Capital | |||
Related Party Transaction [Line Items] | |||
Cash contribution from parent | 130 | 62 | 590 |
CERC Corp | |||
Related Party Transaction [Line Items] | |||
Cash dividends paid to parent | 0 | 80 | 120 |
Capital distribution | 0 | 0 | 28 |
Property, plant and equipment from parent | 0 | 23 | 0 |
CERC Corp | Discontinued Operations | |||
Related Party Transaction [Line Items] | |||
Capital distribution | 0 | 286 | 0 |
CERC Corp | Additional Paid-in-Capital | |||
Related Party Transaction [Line Items] | |||
Cash contribution from parent | $ 180 | $ 217 | $ 129 |
Leases (Details)
Leases (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)MW | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |||
Operating lease cost | $ 8 | $ 9 | |
Short-term lease cost | 119 | 14 | |
Total lease cost | 127 | 23 | |
Operating Leases, Lease Income [Abstract] | |||
Operating lease income | 6 | 5 | |
Variable lease income | 1 | 1 | |
Total lease income | 7 | 6 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating ROU assets | 22 | 31 | |
Finance ROU assets | 179 | 0 | |
Total leased assets | 201 | 31 | |
Current operating lease liability | 6 | 6 | |
Non-current operating lease liability | 17 | 26 | |
Total leased liabilities | $ 23 | $ 32 | |
Weighted-average remaining lease term (in years) - operating leases | 6 years 2 months 12 days | 6 years | |
Weighted-average discount rate - operating leases (as a percent) | 3.10% | 3.14% | |
Weighted-average remaining lease term (in years) - finance leases | 7 years 6 months | ||
Weighted-average discount rate - finance leases (as a percent) | 2.21% | 0.00% | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, net | Property, Plant and Equipment, net | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other | Other | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other | Other | |
Operating Lease Liabilities, Payments Due [Abstract] | |||
2022 | $ 6 | ||
2023 | 5 | ||
2024 | 3 | ||
2025 | 3 | ||
2026 | 3 | ||
2027 and beyond | 5 | ||
Total lease payments | 25 | ||
Less: Interest | 2 | ||
Present value of lease liabilities | 23 | $ 32 | |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||
Finance lease, not yet commenced, amount | $ 496 | ||
Lease not yet commenced, amount of megawatts | MW | 380 | ||
2022 | $ 5 | ||
2023 | 5 | ||
2024 | 5 | ||
2025 | 6 | ||
2026 | 6 | ||
2027 and beyond | 142 | ||
Total lease payments to be received | 169 | ||
Other Information Related to Leases [Abstract] | |||
Operating cash flows from operating leases included in the measurement of lease liabilities | 6 | ||
Financing cash flows from finance leases included in the measurement of lease liabilities | 179 | 0 | $ 0 |
Houston Electric | |||
Lease Disclosure [Line Items] | |||
Expenses associated with short-term lease | 20 | ||
Recovery of deferred costs sought | $ 200 | ||
Number of megawatts of mobile generation | MW | 505 | ||
Number of megawatts of mobile generation delivered | MW | 125 | ||
Right to terminate, lease costs refunded (as a percent) | 75.00% | ||
Lease, Cost [Abstract] | |||
Operating lease cost | $ 1 | 0 | |
Short-term lease cost | 118 | 12 | |
Total lease cost | 119 | 12 | |
Operating Leases, Lease Income [Abstract] | |||
Operating lease income | 1 | 0 | |
Variable lease income | 0 | 0 | |
Total lease income | 1 | 0 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating ROU assets | 1 | 1 | |
Finance ROU assets | 179 | 0 | |
Total leased assets | 180 | 1 | |
Current operating lease liability | 1 | 0 | |
Non-current operating lease liability | 0 | 1 | |
Total leased liabilities | $ 1 | $ 1 | |
Weighted-average remaining lease term (in years) - operating leases | 4 years 1 month 6 days | 4 years | |
Weighted-average discount rate - operating leases (as a percent) | 2.86% | 2.59% | |
Weighted-average remaining lease term (in years) - finance leases | 7 years 6 months | ||
Weighted-average discount rate - finance leases (as a percent) | 2.21% | 0.00% | |
Operating Lease Liabilities, Payments Due [Abstract] | |||
2022 | $ 1 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 and beyond | 0 | ||
Total lease payments | 1 | ||
Less: Interest | 0 | ||
Present value of lease liabilities | 1 | $ 1 | |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 and beyond | 0 | ||
Total lease payments to be received | 0 | ||
Other Information Related to Leases [Abstract] | |||
Operating cash flows from operating leases included in the measurement of lease liabilities | 1 | ||
Financing cash flows from finance leases included in the measurement of lease liabilities | 179 | 0 | $ 0 |
CERC Corp | |||
Lease, Cost [Abstract] | |||
Operating lease cost | 4 | 5 | |
Short-term lease cost | 0 | 0 | |
Total lease cost | 4 | 5 | |
Operating Leases, Lease Income [Abstract] | |||
Operating lease income | 3 | 2 | |
Variable lease income | 0 | 0 | |
Total lease income | 3 | 2 | |
Assets and Liabilities, Lessee [Abstract] | |||
Operating ROU assets | 12 | 19 | |
Finance ROU assets | 0 | 0 | |
Total leased assets | 12 | 19 | |
Current operating lease liability | 2 | 3 | |
Non-current operating lease liability | 11 | 18 | |
Total leased liabilities | $ 13 | $ 21 | |
Weighted-average remaining lease term (in years) - operating leases | 6 years 6 months | 7 years 6 months | |
Weighted-average discount rate - operating leases (as a percent) | 3.20% | 3.36% | |
Weighted-average discount rate - finance leases (as a percent) | 0.00% | 0.00% | |
Operating Lease Liabilities, Payments Due [Abstract] | |||
2022 | $ 3 | ||
2023 | 2 | ||
2024 | 2 | ||
2025 | 2 | ||
2026 | 2 | ||
2027 and beyond | 3 | ||
Total lease payments | 14 | ||
Less: Interest | 1 | ||
Present value of lease liabilities | 13 | $ 21 | |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |||
2022 | 3 | ||
2023 | 3 | ||
2024 | 3 | ||
2025 | 3 | ||
2026 | 4 | ||
2027 and beyond | 136 | ||
Total lease payments to be received | 152 | ||
Other Information Related to Leases [Abstract] | |||
Operating cash flows from operating leases included in the measurement of lease liabilities | 3 | ||
Financing cash flows from finance leases included in the measurement of lease liabilities | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - CERC Corp - USD ($) $ in Millions | Feb. 11, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||
Payments of Dividends | $ 0 | $ 80 | $ 120 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Payments of Dividends | $ 720 |